Reader Phil asks I have a question on waivers in MLB. Say a player is put on waivers. The CBA says that if a player is released, then the team must pay him a termination fee, which during the season, is the balance of his contract. If that player is picked up, is the original team off the hook completely?
That's right. It's one of the reasons there are fewer waiver claims than there used to be, since teams are more hard-pressed to take on the size of contracts nowadays. When a player is claimed off waivers, his new team inherits his contract in its entirety; including all years, all salary obligations, any option rights, and any buyouts that a player may be due. This can be expensive, and it means that a player like Manny Ramirez (memorably, this past winter) can be slipped through waivers without being claimed.
You can always ask Craig about the CBA, and he'll try to give the right answer. E-mail me at craig@battersbox.ca.
https://www.battersbox.ca/article.php?story=20040725070650999