What happens to a player's contract when they clear waivers?

When a player clears waivers, it means that no other team has claimed them after they were placed on the waiver wire. In this scenario, the player's existing contract remains intact until the end of the season. This is significant as it implies that the player is still bound by the terms of the contract they were previously under, including any remaining salary and obligations, unless they reach an agreement with their current team to modify or terminate it.

The distinction here is critical because, while a player might not be picked up by another team, they are not automatically released into free agency or do not have the liberty to negotiate a new contract with other teams until their current contract is resolved. The player's rights remain with the current team, unless they are officially released or a new arrangement is made. Therefore, the contract is still operational and must be honored until any further action is taken by either the player or the team.