Cincinnati outrighted Lively to Triple-A Louisville on Wednesday.
Lively passed through waivers unclaimed after being removed from the Reds' 40-man roster. The 31-year-old right-hander made it back to the majors this season for the first time since 2019 but posted a rough 5.38 ERA in 12 starts and seven relief appearances covering 88.2 innings.
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