Hypothetical what-if (because I am curious):
Say you have a athlete on your team. He is a good runner/jumper/sprinter/thrower (pick one), but nothing special. On a good day, as a frosh, he is your #2 guy for his event. He can score at a conference meet, barely. He gets a little bit of athletic money, but just enough to cover books.
You are his coach at UNC Charlotte. He gets on well with the team but doesn't like Charlotte much.
His grades were okay in high school, again nothing special, but he worked hard and as a North Carolina resident he made it to Charlotte.
Then something clicks, he finds the right major, and at the end of his freshman year he finishes with a 4.0 and thinks about the academic challenge of transfering to UNC Chapel Hill because he wants to try research/more challenging classes/to go to law school (pick something). He thinks that he could get a similar athletic package at Chapel Hill, and maybe even a little merit aid money, too, in addition to the in-state tuition.
His transfer isn't about athletics, although his aim is to compete for a well-regarded program quite proximate to yours.
He comes to you his sophomore year and talks to you directly about transfering, telling you he has already applied and gotten in (he isn't asking your permission--he's telling you he is leaving). It's early spring, so there is still time to give some more money (his) around, but not much.
Do you release him? Yes? No? What would have to be different to make you answer the other way?