A player DFA'd is removed from the club's 40 man roster. Within 7 days, He must be either placed on waivers, traded, released, or outrighted to the minors. In all cases except a trade, the major league team is still responsible for the remainder of the player's contract. A player can only be outrighted once. That isn't a factor for Allen though, because as a player with more than 5 years MLB service time, he can refuse a minor league assignment. Allen was released, meaning he is the property of no MLB team, and is a free agent. An MLB team signing him to a MLB contract would only be responsible for the prorated portion of the MLB minimum. In Allen's case, I believe the Twins signed him to a minor league contract, so they're not even responsible for that.