We think you're near Los Angeles

Currently in Los Angeles

Location: Los Angeles Current temperature: 78°F: Current condition: Clear See Extended Forecast

America Inspired

Sports Business 101: What does designated for assignment mean?


After struggling through the 2009 season John Smoltz was designated for assignment by the Red Sox AP Photo/Winslow Townson

Nearing the end of a Hall of Fame career, Pitcher John Smoltz was hoping for one last chance at glory with the Boston Red Sox this year. After two big decades as an Atlanta Braves starter and closer Smoltz had a very unimpressive 2009 record of 2-5 with an 8.32 ERA. After a blowout loss to the New York Yankees Smoltz was designated for assignment.

The question here is what does that mean exactly?

Since all MLB contracts are guaranteed, the DOA rule is one of the only ways a MLB franchise has available to get rid of contracts of players who are not exactly working out.

Once a team makes a player DOA, three things are going to happen within 10 days. The team may place the player on waivers, trade the player, or give the player is outright release.

While this may look like an advantage only to the club the player is also protected under this rule. If the player is traded he must remain on the Major League staff of the team rest of the current season.

Now if the team places the players on waivers in an attempt to move him to its minor league teams, a player with at least 5 years of service can refuse the minor league assignment and become a free agent immediately. Players can only be forced into the Minor League system once in their career.

If the player was DOA to facilitate a trade and the player has 10 years of service, with the last five years with his current team he may block the trade.

If the player is placed on waivers and claimed by another team, again that team must keep the player on its Major League Staff for the remainder of the current season.

Finally if the player is DOA and is not traded and clears waivers he is a free agent free to sign with any team, and his former team is off the hook for his salary.

In the case of Smoltz it is unlikely another team will pick him up and it all likelihood his hall of fame worthy career is now at an end.
 

Advertisement

, Sports Business Examiner

Josh is a lifelong sports fan who is currently working on his business degree, so it seemed only natural for him to start writing a column examining the role of business in sports.

Don't miss...