Matt Morgan was doing nothing in TNA, so this was a logical move.
When a guy is making money, a substantial amount, I assume, to just sit at home, releasing him is a no-brainer. There have been numerous reports surfacing, true or not, that TNA has been late in paying their talent. But all things being equal, and supposing they were paying their talent on time, it's silly to pay someone who hasn't appeared on TV since he passed on in the Scorpion to Sting in April.
Morgan is a moderately talented big man who TNA never quite figured out how to use. They used him in the forefront in the fight against Immortal, specifically sticking up for Mr. Anderson with regards to concussions. When that didn't work, they put him back in an awful feud with Hernandez, and shortly after, his contract expired. Then they re-signed him, and did the awful "jumping the rail" gimmick, and worse, the stealing of Hogan's robes for him to pose in every time he went out to lose.
I think the writing on the wall came when he was put in a tag team with Joey Ryan, and they couldn't unseat Hernandez and freakin Chavo Guerrero for the tag titles. They invested alot of time and effort into Ryan, and in doing so, Morgan, especially in backstage segments.
So, what's next for Morgan? I suppose he could go to WWE, as he has the look Vince McMahon drools over. But there's no guarantee he would be used any better then he was in TNA, and he's 36 years old. How many years could he have left? I think TNA made the right decision in cutting ties, and WWE would gain little in signing him. Which, of course, leaves room for just one possibility:
Matt Morgan isn't very good. TNA was smart to cut ties with him, and in doing so, saving money.