Blues have spectacularly cut their losses on £2.5 million Argentine striker Luciano Figueroa.
His contract has been cancelled by mutual consent, which frees him to join Mexican side Cruz Azul.
It could have been even worse for Blues had there not been half-a-dozen clubs willing to take on his £10,000-a-week contract, which had four years to run.
Figueroa could have demanded a massive pay-off otherwise.
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Figueroa, signed in August from Rosario Central, played for just three minutes in the Premiership as a substitute against Portsmouth on September 27.
He scored seven times for the reserves and despite manager Steve Bruce likening him to Marcus Stewart shortly after his arrival, he decided he wasn't up to scratch.
Blues had originally agreed a season-long loan with Cruz Azul but ran into problems with FIFA over that type of switch.
Under governing body rules, a player is only allowed one transfer per season, including international loans.
So, with all parties realising Figueroa faced a future of kicking his heels at St Andrew's until June at least, a compromise was reached resulting in his exit.
Co-owner David Sullivan took a personal interest in Figueroa when alerted by an agent in the summer and effectively bankrolled the gamble on him.
Figueroa scored freely for Rosario and several clubs, including Wolves and Bolton Wanderers, tried to sign him.
Sullivan said: "We've torn the contract up so he's eligible to leave. It's a shame but these things happen.
"Steve didn't think he was good enough or big enough to play in the Premiership and you have to respect your manager's judgment.
"Maybe had he got in the team and scored a couple of goals things might have turned round but it wasn't to be."