It's such a pity that he can't realize his potential because of a bad relationship between he and his teacher!
ご質問ありがとうございます。
"It's such a pity"=「それは本当に残念だ」
"that he can't realize his potential"=「彼が(自分の)力を発揮できないとは」
"because of a bad relationship between he and his teacher!"=「彼の先生との悪い関係によって。」
(又は、"because of human relationships!")
ご参考に。