Designated for assignment is a contractual term used in Major League Baseball

Major League Baseball

Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...

. When a player is designated for assignment, he is immediately removed from the club's 40-man roster. This gives the club 10 days to decide what to do with the player while freeing up a roster spot for another transaction, if needed. After designating a player for assignment, the club must either:

(a) return the player to the 40-man roster within 10 days from the date of designation, or
(b) make one of the following contractual moves:

• Place the player on waivers (which can only be done within the first 7 days of the 10-day period)
• Trade the player
• Release the player

Place the player on waivers

Typically a player is placed on waivers after being designated for assignment for the purpose of outrighting him to one of the club's minor league teams. A player who is outrighted to the minors is removed from the 40-man roster but is still paid according to the terms of his guaranteed contract. A player can only be outrighted once in his career without his consent. However, a player must clear waivers (that is, no other team may place a waiver claim on the player) to be sent to a minor league

Minor league baseball

Minor league baseball is a hierarchy of professional baseball leagues in the Americas that compete at levels below Major League Baseball and provide opportunities for player development. All of the minor leagues are operated as independent businesses...

 team. Also, if the player has five or more full years of major league service, he must give consent to be assigned to the minors. If the player withholds consent, the team must either release him or keep him on the major league roster. In either case, the player must continue to be paid under the terms of his contract.

Trade the player

Once a player is designated for assignment, he may be traded. Some teams have been known to designate players for assignment to increase interest in the player, especially among teams that are not at the top of the list for waivers. For example, in May 2006, Rangers

Texas Rangers (baseball)

The Texas Rangers are a professional baseball team in the Dallas-Fort Worth Metroplex, based in Arlington, Texas. The Rangers are a member of the Western Division of Major League Baseball's American League, and are the reigning A.L. Western Division and A.L. Champions. Since , the Rangers have...

 reliever Brian Shouse

Brian Shouse

Brian Douglas Shouse is a former left-handed Major League Baseball relief pitcher. Starting in 2001, Shouse pitched with a distinctive sidearm delivery, which replaced his earlier, more traditional, overhand delivery.-Career:...

 was designated for assignment, and was traded to the Milwaukee Brewers

Milwaukee Brewers

The Milwaukee Brewers are a professional baseball team based in Milwaukee, Wisconsin, currently playing in the Central Division of Major League Baseball's National League...

 four days later. The Brewers could have waited until Shouse was placed on waivers so they would not have had to give up a player in a trade, but according to the waiver rules, the other 13 AL teams would have preference in claiming him. Also, under the "ten-and-five rule," if a player has ten years of Major League service, the last five with his current team, he cannot be traded without his consent.

Release the player

If a player is not traded, and clears waivers, he may be released from the team. The player is then a free agent and may sign with any team, including the team that just released him. The team that releases him is responsible for the salary the player is owed, less what he is paid by the team that signs him. In practice, that amount is usually a pro-rated portion of the Major League minimum salary.