I have a player with four seasons left on a horrible contract. Our year is about to start and I waived the guy to demote to AAA, remove from 40 man roster, and hope someone took him in the rule 5 draft. I got this message,"You are attempting to outright Jose Leon to the minor leagues. He has the choice of becoming a free agent instead of accepting the assignment. We asked the player what he would do and he responded that he would elect to become a free agent. You may either keep him on your roster or release him." So if I release him, am I still paying him his entire contract unless by some miracle, someone signs him?
Any help greatly appreciated.

If you release him, not only do you pay the entire contract unless someone signs him--but you pay almost the entire contract even if someone signs him; they pay the major league minimum and you pay the rest.

Looks like you gave him the contract.  A hard lesson learned, but you're stuck with him.

At least he can eat innings for you in the mop-up role.

And with multiple seasons left, he wouldn't be eligible for the Rule 5 draft anyway.

Thanks for the replies.