How about you actually read the whole conversation?
Richards isn't physical, can't skate, has bad hands, is making terrible decisions offensively and defensively, and is putting in sub-par effort. LAK aren't waiving him solely because of his contract. They are waiving him because he can't play well and is being outplayed by every other center on the team. If Richards was playing well, he wouldn't be on waivers.
I would argue that this decline in play is due to age, previous injury, and play style. That he can't play better and that he will only continue to decline.
Even if this decline is more situational (related to systems, teammates, TOI, usage, mental), I would argue that Pittsburgh is a terrible fit for Richards. The system might work, but he won't get better line mates, TOI, or usage.
Sutter's play has nothing to do with how poorly Richards is playing.