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Merrill Kelly Chooses Diamondbacks Over Padres for Tax Savings

2/28/2026

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Summary

Story summary

Merrill Kelly signed a two-year, $40 million deal with the Arizona Diamondbacks rather than a three-year offer from the San Diego Padres.
He cited California's 13% state income tax, compared with Arizona's 2.5%, as a key factor.
Kelly, who has ties to Arizona, said financial considerations were a significant factor and Arizona was his priority.
The Padres will rely on their current rotation as they head into the 2026 season.

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Story summary

Merrill Kelly signed a two-year, $40 million deal with the Arizona Diamondbacks rather than a three-year offer from the San Diego Padres.
He cited California's 13% state income tax, compared with Arizona's 2.5%, as a key factor.
Kelly, who has ties to Arizona, said financial considerations were a significant factor and Arizona was his priority.
The Padres will rely on their current rotation as they head into the 2026 season.