How Baseball Options and Waivers Work Explainer
An option allows an MLB club to assign a player on its 40-man roster to the minor leagues without first exposing him to other teams. Once a player is added to the 40-man roster, he normally has a limited number of option years. Using an option year is not the same as making one trip.
A player may be moved up and down multiple times during an option year, subject to current limits and roster rules. The year is generally charged only if the player spends enough time optioned in the minors. Injuries, service time, and special provisions can affect the calculation.
When a player has no options remaining, the club usually must designate him for assignment and place him on outright waivers before sending him to the minors. Other teams then have an opportunity to claim the player and assume his contract and roster status.
If the player clears waivers, the original club may outright him to the minors, though players with certain service or prior outright history may reject the assignment and elect free agency. Options therefore protect roster flexibility; waivers protect a player’s opportunity to be claimed by another major-league club.
An option year permits movement from the 40-man roster to the minors without waivers.
It can include multiple transactions rather than only one demotion.
A player without remaining options generally must clear outright waivers before a minor-league assignment.
Claiming teams take on the player under the applicable roster and contract rules.
Service time and prior outrights can give a player the right to reject an assignment.
That decision may allow the player to elect free agency instead.
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