The Arizona Diamondbacks have secured the return of veteran pitcher Merrill Kelly, who will don the team’s uniform for the start of the 2026 Major League Baseball season. This move comes after Kelly spent a portion of the 2025 season with the Texas Rangers, entering the free agent market following his tenure with the Dallas-based club. The agreement signifies a homecoming for the right-hander, who spent the first seven years of his professional career establishing himself with the Diamondbacks.
Kelly’s decision to re-sign with Arizona was heavily influenced by the financial landscape of potential destinations, specifically the stark contrast in state income tax rates between Arizona and California. While Kelly confirmed he received an offer from the San Diego Padres this offseason, a significant factor in his decision to decline their proposal was California’s higher income tax rate. This financial consideration ultimately tipped the scales in favor of a return to the desert.

According to ESPN, Kelly has agreed to a two-year contract with the Diamondbacks, reportedly worth an estimated $40 million. While the Padres had offered a comparable deal, extending to three years instead of two, the allure of a lower tax burden in Arizona proved to be a decisive advantage. California imposes a 13% tax on income exceeding $1 million, a rate that significantly impacts the net earnings of high-salaried athletes. Kelly openly discussed this factor in an interview with "Foul Territory," stating, "I don’t think it’s any secret on how much money you get taken out of your pocket when you go to California." He elaborated that his financial team had run the numbers, and the arithmetic clearly favored Arizona.
Beyond the financial implications, Kelly possesses deep personal and professional ties to Arizona. He attended high school in the state and played college baseball at Arizona State University, a program with a storied history in collegiate baseball. This established connection to the region played a crucial role in his desire to return. Kelly expressed that finding a way back to Arizona "was always the priority," underscoring the sentimental value attached to playing in a place that shaped his formative years.
The difference in tax rates is substantial. Arizona’s state income tax rate hovers around 2.5%, a considerable reduction compared to California’s top marginal rate. This disparity translates into a significant difference in take-home pay for a player with Kelly’s earning potential. While he expressed admiration for San Diego as a city, the financial realities of playing there were too substantial to overlook. "I love San Diego," Kelly stated, "It’s just, like I said, they take too much money out of my pocket, man. The taxes over there are a different level."

Kelly even offered a lighthearted remark about his preference for the Arizona landscape over San Diego’s coastal environment, joking that he and his family are "not ocean people" and prefer the desert. This personal preference, combined with the strong financial incentive, solidified his decision to return to the Diamondbacks.
The Padres, in a statement to The California Post, maintained their policy of "not commenting on contract negotiations," leaving the specifics of their offer and Kelly’s rejection to speculation beyond the pitcher’s direct statements.
Kelly’s journey back to Arizona is part of a larger narrative of player movement and strategic team building in Major League Baseball. In July 2025, he was acquired by the Texas Rangers. During his partial season with the Rangers, and presumably splitting time with his former team, he posted a 12-9 record, demonstrating his continued effectiveness on the mound. This performance likely fueled the interest from both the Rangers and the Padres, positioning him as a valuable free agent.

The Diamondbacks’ acquisition of Kelly is a significant boost to their pitching staff as they look to contend in the coming seasons. His experience, leadership, and proven track record make him a valuable asset. The team’s strategic decision to prioritize retaining him, even after his brief stint with another club, highlights their commitment to building a competitive roster.
The free agency period in Major League Baseball is a complex interplay of player performance, team needs, financial considerations, and even personal preferences. Factors such as tax laws, proximity to family, and lifestyle choices can all influence a player’s decision. In Kelly’s case, the economic realities of playing in different states played a pivotal role, demonstrating how macro-level financial policies can directly impact individual career choices within professional sports.
The inclusion of multimedia elements, such as photographs and links to related content, enhances the journalistic presentation of the news. The images of Kelly in both his Texas Rangers and Arizona Diamondbacks uniforms provide visual context to his recent career path. The accompanying captions offer crucial details about the games and settings in which these images were captured. The links to other Fox News sports articles and the MLB free agent tracker further enrich the reader’s experience, allowing them to explore related stories and stay updated on league-wide developments.

The mention of "Foul Territory" as the source for Kelly’s direct quote adds credibility and allows interested readers to potentially seek out the full interview for more in-depth commentary. Similarly, the inclusion of a link to the Fox News sports coverage on X (formerly Twitter) and the Fox News Sports Huddle newsletter encourages engagement with the broader sports media ecosystem.
The narrative of Merrill Kelly’s return to the Diamondbacks serves as a compelling case study in the multifaceted decision-making process of a professional athlete. It illustrates how a player’s career is not solely determined by on-field performance or contractual figures, but also by the often-overlooked financial and personal considerations that shape their professional lives. His preference for the "desert landscape" and the tangible financial benefits of playing in Arizona underscore the unique blend of factors that contribute to a successful and satisfying career in professional sports. As the 2026 season approaches, the Diamondbacks will undoubtedly be looking to Kelly to provide consistent and impactful performances, bolstered by his strong connection to the team and the state.

