But aren't the GC saying they will force him into the PSD surely the AFL couldn't/wouldn't punish a player who was out of contract and didn't want to be drafted?
I'm not the expert, but I think in order to nominate for the draft you have to sign something that says you consent to play for whoever who drafts you. As a matter of policy, you can't have players refusing to play for clubs that draft them in good faith with no penalty.