HAINES CITY, FLA. ? Left-hander Jose Rosado, a two-time All-Star who has struggled with shoulder problems the past two years, was placed on unconditional release waivers Sunday by the Kansas City Royals.

Any team that claims Rosado would pick up his $3.25 million salary for 2002. If no team picks him up, the Royals owe Rosado 30 days of severance pay, about $533,000, according to Royals general manager Allard Baird.

Releasing Rosado pares the Royals’ payroll to $49 million. The club payroll was around $52 million and team officials wanted to get it lower than $50 million.

“This is a baseball decision,” Baird said. “This was not an economic decision.”

Rosado declined to comment Sunday afternoon.

Rosado was 2-0 with a 6.75 earned run average in two exhibition starts, allowing three runs on seven hits, including a home run, and two walks in four innings. Opposing hitters had a .412 average off Rosado.

Rosado’s fastball peaked at 81 mph Saturday against Cleveland.

“You’ve got to get major league hitters out,” Baird said. “It still comes back down to ability, whatever the speed and pitch ability. In our situation right now, ability-wise we feel that we have a number of pitchers ahead of him.”

Rosado, 27, was drafted by the Royals in 1994 out of Galveston (Texas) Junior College and made his major league debut in 1996 at the age of 21.

He was the winning pitcher in the 1997 All-Star Game at Cleveland and also pitched a scoreless inning in the 1999 All-Star Game at Boston.

But shoulder problems have plagued Rosado the last two seasons. He had surgery on June 23, 2000, to repair a a labrum cartilage tear and clean up the undersurface of his rotator cuff.

Rosado tried to come back in spring training of 2001, but again experienced pain. A second procedure was done on his shoulder last May and he missed the entire season.

Baird and manager Tony Muser went to Puerto Rico in December to watch Rosado throw. They were impressed and decided to tender Rosado a contract.

“If we had to do it all over again, we would do the same thing, there’s no doubt about that,” Baird said.

Early spring training results, however, diminished the Royals’ optimism.

“He’s feeling healthy and recovered,” Baird said. “It’s just the level he’s going to be able to compete at. If he does clear waivers at 1 p.m. Wednesday, we would have a strong desire to re-sign him to a minor league contract.”

Rosado has a 37-45 record with a 4.27 ERA in 125 big league games, all with Kansas City.

He last pitched on April 30, 2000.

“Anytime you do something like this, it’s a difficult thing,” Baird said. “I think everybody in the room took it tough. We’re dealing with a quality person. A person we evaluated, drafted and signed by the organization.”

Said Muser: “It’s not an easy thing to do. He’s a good person. It’s part of the game. We’re in the evaluation business and at this particular time, he’s behind a lot of people here.”

Center fielder Carlos Beltran said Rosado was making progress in spring training.

“This game is all about business,” Beltran said.