eMailbag: DFA, Waivers and Options Explained
Dustin H. sent in an email asking…
“Could you please explain what DFA means and how it relates to major and minor league assignment and what does it mean to clear and not clear waivers? After reading all of the recent articles on who would be sent back to AAA and the issues with Jorge Sosa and Joe Smith, I am confused. Can you help clear this up for me?”
When a player is designated for assignment, or “DFA” for short, the team has three options, which must take place within 10 days.
The first option is to place the player on waivers. When placed on waivers the player is removed from the 40-man roster with the purpose of outrighting him to a minor league affiliate. However, a player can only be outrighted without his consent one time in his career or the player can withhold consent. Players can also withhold consent if they have five years or more of major league experience. If the player accepts the minor league assignment he must continue to be paid at his agreed upon salary in his contract.
Before being outrighted a player must clear waivers, which typically takes three to five days. If a player is claimed on waivers, he becomes property of that team and the process is complete.
If Nelson Figueroa passes through waivers he is expected to be assigned to Triple-A New Orleans.
In the case of Sosa, he has five years of major league experience, so the Mets must wait to see if he accepts the minor league assignment or is claimed on waivers or they must complete one of the next two options.
The second option is to trade the player. In order for the player to be traded he must clear waivers. If a player has 10 years of major league experience, in which the last five have been with his current team, the player cannot be traded without consent.
The final option is to release the player. If the team releases him, the player must continue to be paid according to the contractual agreement between the team and player. At that time the player becomes a free agent and may sign with any team. However, if the player signs with another team, the team that releases the player still must pay the player a pro-rated amount of the major league minimum.
In the case of Smith, he has what are called “options.” Once a player has been with a major league organization for three years he must be protected on the 40-man roster or placed in the Rule V draft. In the three years that follow assignment to the 40-man roster the team earns options. Which means, the player can be freely moved up and down from the minor league without subjecting the player to waivers.
A player is out of option in the fourth year of being on the 40-man roster and cannot be sent down without clearing waivers first.
Only players ineligible for free agency can be optioned.
…i hope this clears the situation up for you, dustin…
