Releasing Players

[Dodgers GM]

When teams release a player to free agency, there is a 72 hour window where the player can be claimed by any other team. The claiming team assumes the player's full contract and moves to the end of the waiver order.

If no team claims a released player, the releasing team assumes half of the player's salary for the remainder of the player's contract. If a player is released, clears waivers, and then signs with a new team the releasing team remains on the hook for the salary penalty. Teams can decline team options at no cost when releasing a player.

If a player is up for arbitration and does not have a contract, teams may release the player at no cost.

Minor league prospects may be released without penalty.

[Deleted]

Rules Clarification.

Teams cannot decline team options at no cost when releasing a player.

The cost of declining the option is 25% of the total option salary.  This is how the league was always run reference the old league rules:

mlbgeneralmanager.proboards.com/thread/2117/proposed-player-extensions-rule-clarification

This is how it was done since the beginning.  It makes sense that there would be something punitive to declining an option, otherwise every single one of our contracts would contain options.   Still many of them do because it allows for some flexibility and an extra year of control without having to pay the full 50% hit if the player doesnt perform, but a smaller penalty is enforced at 25% if the option is declined.


Prospect options and ARB eligible players can be dropped during the option period during the offseason at no penalty.


The only clarification to this is the few players that are left from our original league draft that are operating under their real life salaries are subject to their real life option buyouts.


An example of that is I have a 10M option on Ian Kinsler in 2018 and his contract ins consistent with his real life contract.   He has a buyout of 5M if the option is declined so I'd be subject to that buyout if I decline his option.


Any questions on this let me know.


I imagine if someone declined an option with the idea that there would be no penalty and wants to change their mind based on the clarification on the rules that wont be an issue.
 

[Dodgers GM]

Royals is right, I missed this in the original rules post. 25% cap penalty of the option to decline. All teams will have the opportunity to reverse their decision if they choose, just PM me and I'll make the change on the spreadsheet.