Being "designated for assignment" (DFA) in Major League Baseball means a player is immediately removed from his team's 40-man roster. After this designation, the team has seven days to decide the player's fate: they can trade him, place him on waivers, release him, or outright him to the minor leagues if he clears waivers
. Key points about DFA include:
- The player no longer counts toward the 40-man roster limit, allowing the team to add another player in his place
- If placed on waivers, other teams can claim the player and must add him to their own 40-man roster, taking on his contract
- If the player clears waivers, the original team can outright him to the minors, but players with certain MLB service time (three or more years, or previously outrighted) can reject this assignment and opt for free agency instead
- DFA is different from being optioned to the minors, which involves sending a player with minor league options down without removing him from the 40-man roster. DFA is used when a player must be removed from the 40-man roster and the team needs time to decide what to do next
In essence, DFA is a procedural step that puts a player in a temporary roster limbo while the team figures out whether to trade, release, or demote him, freeing up a spot on the 40-man roster in the meantime
