When a player is placed on outright waivers, the other 29 Major League clubs have the opportunity to claim him. The claiming club assumes responsibility for the remaining money owed to the claimed player, who is placed on his new club's 40-man roster.
Claiming priority is based on reverse winning percentage. So, if a player is placed on outright waivers and claimed by more than one team, the team with the worse winning percentage gets priority. If two or more claiming clubs are tied with the lowest percentage of games won, the priority goes to the club with the lowest percentage of games won in the previous season. (A previous version of the rules gave priority based on the league of the team waiving the player, with NL teams getting priority for NL players, and AL for AL, but that is no longer the case.)
If the player clears outright waivers without being claimed, his team has the option of assigning him outright to the Minor Leagues.
However, players with more than five years of Major League service time can reject an assignment to the Minor Leagues, and players with more than three years of Major League service time, or who have been previously outrighted, may reject the outright assignment in favor of free agency in lieu of the assignment.