The difference between “waived” and “released (terminated contract)”
When a team decides to cut a player, that player is either released or waived depending on their accrued seasons, which are counted as any season in which a player spends at least six weeks with a team.
Players with at least four accrued seasons are considered vested veterans and must be released. When a veteran is released, that player’s contract is effectively terminated and they immediately enter free agency.
Any player with less than four accrued seasons is subject to the waiver system, which allows every other team an opportunity to claim their existing contracts. Any player who goes unclaimed on the waiver system becomes a free agent and can negotiate for a new contract with any interested team.