Pitcher Merrill Kelly has made a significant decision regarding his career by rejoining the Arizona Diamondbacks after a brief stint with the Texas Rangers. In December, he finalized a two-year, $40 million contract, citing both personal and financial reasons for his return.
Merrill Kelly’s Return to Arizona
Merrill Kelly signed his first Major League Baseball contract with the Arizona Diamondbacks in 2018, spending the majority of his career with the team. After being traded to the Texas Rangers during the 2025 season, he chose to return to Arizona this offseason. His new contract, worth $40 million over two years, was officially signed in December.
Financial Considerations Behind His Decision
While Kelly expressed his fondness for the city and confidence in the Diamondbacks’ roster, he revealed more about his decision during a conversation with Foul Territory. The pitcher was considering a lucrative three-year offer from the San Diego Padres. Although appealing, he ultimately chose Arizona, in part due to the financial implications of state taxes.
California’s tax rate is considerably higher than Arizona’s flat 2.5% state income tax. If Kelly had signed with the Padres, he would have faced an estimated $5,300,116 in state income taxes over the length of the deal. In contrast, his new agreement with the Diamondbacks means approximately $1 million in state taxes, resulting in an additional $4,300,116 retained in his earnings.
This trend of players navigating state taxes has been observed with others, including Shohei Ohtani, whose substantial $700 million contract incorporates deferred payments potentially allowing him to live outside California by the time he collects it.
At 37 years old, Kelly is likely nearing the end of his career and is focused on maximizing his financial future. Throughout his career, he has accumulated roughly $36.6 million, making this recent contract an important consideration for his financial stability.
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