If he's offered back, first he goes on waivers with Rule 5 status. The entire league gets a shot at him before he can come back to you, but they have to accept Rule 5 and keep him on their ML roster. If he gets through everyone, his Rule 5 status is removed. At that point he can be demoted, but his salary remains at 327k, whether you accept him back or Refuse and leave him with the claiming team.