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Did you try to move him to the minors via waviers?
If he rejects the move and you don't want to work for a trade, than Cutting him is the only option.
If he goes down, he won't take a position on the 40 man. You'll still be paying, but maybe you can still move him.
I've never not been able to trade a player. It does take a lot of time to find a deal that will work and it probably will not be one-for-one. You will probably need to give up a prospect and maybe retain some of the contract. But at least you want be retaining it all. You also will not be responsible for the buyout dollars.
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