Merrill Kelly Chooses Diamondbacks Over Padres Due to Tax Considerations
Merrill Kelly faced a dilemma this offseason as he considered his options in Major League Baseball. The experienced pitcher found himself weighing the value of two contract offers, and interestingly, he found that sometimes, in the eyes of California tax law, 2 could be greater than 3.
Kelly had a lucrative two-year, $40 million contract on the table from the Diamondbacks. In contrast, there was also a three-year, guaranteed deal from the Padres that boasted a similar average annual value. On the surface, it might seem like a tough call—after all, who wouldn’t want to play in sunny California?
In a recent interview with Foul Territory’s Scott Brown and AJ Pierzynski, Kelly elaborated on his decision, revealing that it was largely influenced by California’s tax system. “It’s no secret how much tax you pay out there,” he mentioned. At 37 years old, the right-handed pitcher pointed out that financial implications played a significant role in his choice.
Of course, there were other motivations for his selection of Arizona. Kelly, who grew up attending Desert Mountain High School in Scottsdale and later played at Arizona State University, has deep ties to the area. Plus, he has been a consistent presence in the Phoenix area, logging innings for the Diamondbacks for the past seven seasons. “Coming back here was always my priority,” he noted, emphasizing his fondness for the state.
When Pierzynski joked about turning down a lucrative offer to live in San Diego, Kelly didn’t shy away from addressing the reality of the situation. He found it tough to justify handing over a significant portion of his earnings to the California state government. “I love San Diego,” he reaffirmed. “But they really tax you over there.”
Kelly broke down the numbers for his wife and himself, and it was clear that staying in Arizona with a much lower state income tax of approximately 2.5% made more financial sense. He recognized that even though San Diego was appealing, the desert has its own charm for him and his family. “I don’t think we are sea people,” he said, conveying a sense of comfort with his decision.
The Padres, when approached about Kelly’s comments, mentioned they do not comment on contract negotiations, which leaves the door open for future discussions. Last season, Kelly pitched 184 innings for the Diamondbacks, resulting in a 12-9 record with a 3.52 ERA and 167 strikeouts. However, he is facing a delayed start to the new season due to a back injury.
The Padres are gearing up for the 2026 season with a starting lineup led by Michael King, Joe Musgrove, and Nick Pivetta. One can’t help but wonder how things might shift if California’s tax landscape were a bit more forgiving.
