Was the DC contract drafted sloppily to allow this because no-one could imagine the edge case of him throwing away money?
Is he creatively interpreting it ("it doesn't say anywhere that dogs can't play basketball" wouldn't really stand in court, and I'm suspicious about "I am not allowed to authorize anyone else to print fanfics of Fables but I am allowed to authorize everyone else to authorize anyone else to print them)?
Is he reneging on an obligation towards them that they can and will sue him for (or maybe the way the contract dealt with this was saying he can't do this and if he does the contract is void and he pays a small fine, and he doesn't care about the small fine or the contract)?