I'm guessing that is not a rhetorical question so I'll answer it straight: the team got butthurt that his son signed with Benfica, it led to some weirdly bad blood between the two sides, and ended with Varela has been training with the B team for, what, 6 weeks now? I believe he was removed from our European list when we moved past the group stage as well.
There were some rumors that his old team in Romania was interested, but were not willing to pay the salary he's on. So he's content to ride out the remainder of his contract and then try his luck as a free agent. A sad end to a great partnership.