As a brief background, grayshirting is a simple concept - the student, upon enrolling in college, enrolls at less than full time (normally meaning 11 units or fewer). As long as he does not ever enroll full time, then the NCAA clock does not start ticking - and he is not burning eligibility. Grayshirting began in football where coaches would encourage their recruits to graduate early and then enroll part time in the spring. The player gets the benefit of participating in spring practice without using any eligibility. The player would still have the redshirt year available, which means he has six years to complete college. Football coaches like this, especially for their linemen who may need extra time in the weight room to beef up before starting their college careers.
Where this can be applied to baseball is when a player knows going into his freshman year that he is a long shot at best of making the team due to developmental issues or injury. It is especially helpful when a player is intending to start at a junior college - where taking three years can pose a real issue given the new transfer rules. The grayshirt year gives player a head start on completing the units required prior to transferring without starting the eligibility clock.
There are some minor difference how this works depending upon where the player ends up playing. At D1
Obviously there are a number of drawbacks:
1) You have to decide before the school begins - once you enroll full time, your clock is started on the 5 to play 4 clock and/or you have used one of your 10 semesters.
2) The player's parents have to watch out for their son's medical insurance - failure to enroll full time can mean the loss of medical insurance through some employers.
3) You have slowed down the process of getting your degree - making it really difficult to graduate in 4 years. AP units can help close this gap.
Hope this helps some players who may be facing difficult decisions. Corrections and comments on the above are more than welcome.
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(Note - corrections made per 3FG regarding D2 rules on amount of time allowed to play - see strikethru and italics)