No, if they're placed on the BL roster and then waived, they get BL money. Again, I think it might be a little shady but without knowing the full story, I'm not sure I want to throw a stone at his house. If he's taken over a decimated team with low payroll, I'd say he's trying to build depth. If someone loses 4-5 players in R5, I'd say they have too much depth. It's all about the situation.
If he has options, I believe you can send him to the minors without clearing waivers.