Davino, 35, missed seven games because of a foot injury and seldom displayed the poise and form he displayed with the Mexican national team and for his former team, Club America, which he represented for a decade.
FC Dallas will buy out a portion of the remaining year on his guaranteed contract with allocation money left over from the 2008 season, during which FCD received funds from teams in exchange for Arturo Alvarez (to San Jose) and Abe Thompson (Kansas City). There will be a cap hit on FCD's salary budget for the 2009 season but it will only be a fraction of the $400,000 base salary he was paid this season.
Last year, FC Dallas signed Brazilian midfielder Denilson in midseason as a Designated Player, and he played just eight games and scored one goal in a mostly listless stint. FCD declined to pick up his option for the 2008 season.
FCD has also declined the option on Dutch midfielder Victor Sikora, who was signed in August and scored one goal in five games, but missed much of the season because of a torn meniscus in his right knee. He is negotiating a move to an Australian club. A deal was discussed with A-League club Perth Glory last summer before he came to MLS from NAC Breda.
Hyndman is scouting players in South America. He began in Argentina and arrived in Brazil Wednesday. He has resources available to reform the team: FCD holds two first-round SuperDraft picks, and in addition to some 2008 allocation money, it will receive another large chunk for missing the playoffs this year and also has money to spend stemming from the sale of midfielder Juan Toja to Romanian club Steaua Bucharest.