Definition of DFA'd

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What does the term "DFA'd" mean in the baseball world? What is meant if a player is "DFA'd"?

They are the words that no Major League Baseball player wants to hear:

"You've been DFA'd"

To be "DFA'd" means that your contract has been designated for assignment.

A player that has been DFA'd is IMMEDIATELY removed from his team's 40-man roster. At this point, a 7-day countdown begins where the player can be either:

a) traded
b) placed on outright waivers

If a player is claimed on waivers, they are immediately added to the roster of the team that claimed them. Players with more than three years of MLB service time can choose to reject the assignment and claim free agent status instead. This also applies to players who have been placed on outright waivers before.

A player without three years of MLB service will either be added to their new team's 26-man roster or sent to the minor leagues.

If a player is placed on outright waivers and NOT claimed, their team can choose to either send them to the minors or release them.

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Players are usually DFA'd to make room for an incoming player (trade, free agent signing, call-up or activation from 60-day injured list).