Clear Waivers

He can just retire. No biggie.
Once waived each nfl team has a chance to claim him off the waiver wire but he counts toward their total. If no team claims him he is a free agent.
When josh booty came back to LSU he just retired from baseball

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He can just retire. No biggie.

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But why would he?

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When josh booty came back to LSU he just retired from baseball

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Because he was done with baseball, the players in question are not done with football and hope to make an NFL roster; if not this season, then next.

If a player were to retire while on the waiver wire, they would be retiring under the current team's contract. If they were to return to the NFL, it would be under that contract, but only after they file formal written notice with the league office.