Diamondbacks Notes: Kendrick, Trades, Kelly, Locklear
As per RosterResource‘s estimates, the Diamondbacks spent around $191.3MM on payroll in 2025, which translated to a $214.8MM luxury tax number. The Snakes are currently projected for a $195.2MM payroll and a $223.7MM tax figure, as team managing general partner Ken Kendrick’s statement from last September that his club “will not be spending at the same level” has ended up being incorrect.
Kendrick addressed this topic when speaking with the Arizona Republic’s Nick Piecoro and other reporters at the Diamondbacks’ spring camp, saying simply that “well, sometimes you surprise yourself in life in what you do.” The D’Backs are set for their third consecutive payroll increase since the team won the NL pennant in 2023, and while they haven’t since returned to the postseason, Kendrick remains intent on keeping the team in position to contend.
“I want us to be successful. I want our fans to feel that we are committed to investing every dollar possible and putting the best team we can put together on the field….I don’t want to overplay it, but, to a degree, we’re in a partnership with the fans,” Kendrick said. “That’s the way I see what we do. We’re in a partnership with our fans. They generate revenue by buying tickets and coming to ball games and supporting us. And as a good partner, we need to take the money they spend and invest it wisely, and that’s what we’re trying to do.”
The spending may not be over, since Kendrick said “we have some room beyond where we are, but we don’t have a ton of room….Do we have the possibility of adding from the present moment? Yeah, possibly. Not highly likely of significance, but we have some room to add without getting into a tax problem.”
The D’backs are still well shy of the $244MM luxury tax threshold, though their current $223.7MM figure is as close as the organization has ever been to exceeding the tax line. While Kendrick has obviously okayed larger expenditures already, it is probably safe to assume that $244MM is Arizona’s budget ceiling, though the team has some room to maneuver in terms of trade deadline upgrades.
Expanding the payroll has reportedly put the D’Backs into the red, as Piecoro hears from sources that the club lost around $30MM in 2025. It is always a source of conjecture about how much or little any MLB team (apart from the Braves, who are publicly owned) is really making given all of the accounting that goes into a club’s many revenues streams, yet even if the Diamondbacks did operate at a loss, it hasn’t stopped Kendrick from continuing to spend on a roster he believes is capable of big things. Further spending to ensure a more competitive team may well be the most logical way of getting the team back into the black, as a winning product leads to higher attendance, higher TV ratings, and extra games in the form of playoff contests.
More moves could come before Opening Day, albeit on a lower spending scale. John Gambadoro of 98.7 Arizona Sports writes that the D’Backs are looking to trade a prospect for a utilityman type of player. This new addition would replace the recently-traded Blaze Alexander as a multi-position asset coming off the Diamondbacks’ bench. While an exact match for Alexander may not be a priority, Alexander is a right-handed hitter who saw time as second base, third base, shortstop, left field, and center field over his two seasons in the desert.
Most of Arizona’s offseason spending was invested in two familiar faces. Zac Gallen spent most of the winter on the free agent market after rejecting Arizona’s qualifying offer, but this past week returned to the fold on a one-year, $22.025MM deal that technically matches the value of the QO, though $14MM of the money is deferred. After the D’Backs traded Merrill Kelly to the Rangers at the trade deadline, Kelly was brought back in December on a two-year deal worth $40MM in guaranteed money, with a vesting option covering the 2028 season.
Soon after Kelly re-signed, reports emerged that a team on the West Coast made Kelly a three-year offer worth over $50MM, and that the Padres were one of Kelly’s prime suitors. Speaking with Piecoro and other media today, Kelly said the Padres had a three-year deal on the table, though he didn’t confirm the dollar figure. Beyond whatever numbers were involved, Kelly said his decision was based in large part on his family. It may well be that the Kelly clan simply preferred returning to the familiar routine of living and playing in Arizona, and Kelly himself said last summer amidst trade speculation that he would be open to re-signing with the Snakes in free agency.
Turning to an injury update, manager Torey Lovullo told reporters (including Alex Weiner of 98.7 Arizona Sports) that first baseman Tyler Locklear isn’t expected back until sometime around mid-May or possibly early June. Locklear underwent twin surgeries to fix both a labrum problem in his left shoulder and a ligament tear in his left elbow. There was some hope Locklear would be ready to return to the Diamondbacks’ lineup at some point in April, though today’s news puts more of a specific timeline in place.
Locklear will definitely start the season on at least the 10-day injured list, and a move to the 60-day IL would occur if the D’Backs are certain Locklear won’t be ready by the end of May. The team can continue to monitor his progress throughout Spring Training and in April with no penalty, as a shift to the 60-day IL would still keep Locklear’s placement date as Opening Day.
Over 47 games and 165 career plate appearances with the Mariners and Diamondbacks, Locklear has hit just .169/.255/.277 against Major League pitching. His impressive minor league numbers hint at more potential, though once he does get healthy, Locklear’s potential spot as a platoon partner with Pavin Smith at first base has now been filled by Carlos Santana. Since Arizona doesn’t have a set DH, there is room for Locklear to potentially earn some at-bats down the road, but for the next three months, his only priority is completing his rehab.
Four Owners Voted Against MLB’s Most Recent CBA Offer
March 4: Angels owner Arte Moreno, D-backs owner Ken Kendrick, Reds owner Bob Castellini and Tigers owner Chris Ilitch were all opposed to proposing a $220MM CBT threshold, per Evan Drellich and Ken Rosenthal of The Athletic. Drellich and Rosenthal add that some concerned owners have pointed to the spending of the Dodgers and the Mets as reasons for trepidation with pushing the luxury tax threshold further north. Martino tweets, rather unsurprisingly, that the Mets and the Yankees are among the teams open to a “less punitive” CBT setup.
The Athletic report also indicates that the players were particularly irritated when MLB proposed counting the cost of player meals against the luxury tax. Whether that’s among the issues recently raised by Blue Jays righty Ross Stripling isn’t clear, but Stripling contended that the league “tried to sneak some shit past us” in the proposal’s “fine print” during the wee hours of Monday night/Tuesday morning negotiations. Health insurance and other player benefits already count toward the luxury tax under the terms of the prior CBA. League special assistant Glen Caplin called reports of MLB trying to include meal money within the CBT “grossly mischaracterized” as part of a statement included in Drellich’s article.
March 3: Major League Baseball’s most recent offer in collective bargaining proved unpalatable to the Players Association, which rejected it despite knowing the league was likely to follow by canceling some regular season games. Various members of union leadership described that as an easy decision, with the MLBPA particularly dissatisfied with the league’s proposals on the competitive balance tax thresholds and the amount of money that would be allotted for the pre-arbitration bonus pool.
While the union found the offer too slanted in favor of the league, some on the MLB side apparently viewed the proposal as going too far towards the players’ asks. Andy Martino of SNY reports that during a video call between all 30 ownership groups and MLB leadership, four owners voted against the terms of the league’s final offer to the union on Tuesday. MLB needs approval from 23 of the 30 ownership groups to agree to their end of a new CBA, so the league was able to proceed with its offer with the assent of the other 26 owners.
Obviously, the terms of that deal weren’t sufficient to get the union’s approval. Yet some of the owners who were on-board with the league’s proposal Tuesday are evidently hesitant to move any further in the players’ direction. Martino writes that the call “made it clear” that more owners would oppose any offer that pushes the base CBT threshold above the $220MM mark the league put forth. The MLBPA, meanwhile, proposed a $238MM base tax marker in 2022. Martino writes that the union refuses to entertain any offer with a 2022 tax threshold lower than $230MM.
There’s currently an $18MM gap on the luxury tax for 2022, and the parties are even more divided on the marker’s long-term future. The MLBPA has sought more rapid escalation of the threshold over the term of a potential CBA than the league has offered. Under the parties’ latest terms, the $18MM gap would rise to a $33MM divide by 2026 — the players were looking to set that year’s figure at $263MM, while MLB proposed $230MM for that season.
Martino’s report sheds some light on the challenges that remain for finding a mutually agreeable settlement on the CBT, which has proven perhaps the biggest sticking point in negotiations. The union has pursued a rapid expansion of the threshold, pointing to team spending habits suggesting the CBT has served as a de facto salary cap for clubs. Last season, five teams finished with CBT payrolls within $5MM of the $210MM base threshold. Two clubs, the Dodgers and Padres, pushed their CBT number above $210MM. Given the union’s longstanding opposition to any form of salary cap, it’s little surprise they’ve sought to dramatically increase the numbers this time around.
The league, meanwhile, has pursued the opposite initiative. MLB’s early CBA proposals included harsher penalties for tax payors, provisions that would’ve presumably made clubs even more reluctant to do so. It dropped the push for tougher penalties this week, but it hasn’t shown the appetite for the kind of higher thresholds the union seeks.
As MLBTR’s Tim Dierkes explored in December, the past two collective bargaining agreements have seen limited growth in the CBT thresholds. From the time of the tax’s introduction in 1997 through 2011, it wasn’t uncommon to see the CBT jump by more than 4% year over year. Since 2012, however, that growth has slowed considerably. The base CBT marker has moved from $178MM that year to $210MM last season, an average hike of less than 2% per year.
The league’s offer to move from $210MM to $220MM would represent a 4.8% year-over-year jump. MLB would presumably posit that’s a meaningful enough increase to be favorable to the players. However, it was followed by no movement on the tax in each of the following two years and minor increases in each of the two seasons thereafter. The union, meanwhile, seems intent on pulling in a more dramatic spike in the tax threshold to somewhat compensate for its slowed progression between 2012-21.
It’s not clear how many owners are inherently opposed to pushing that number beyond $220MM. Martino’s report hints at the conflicted interests that can arise among the ownership groups themselves. Presumably, some large-market clubs that are planning to exceed the CBT anyhow would be on-board with the union’s efforts to encourage penalty-free spending. Others could be anxious to draw a harder line, particularly with the league reportedly content to miss a month’s worth of regular season games in order to pressure the union to move in their direction.
If more than three of the owners who voted yes on MLB’s latest proposal are stringently opposed to going further, the league may be hard-pressed to find the votes to go past $220MM this year. That’d seemingly be unacceptable to the union. If there’s that kind of fundamental disagreement on the luxury tax, it’ll be essentially impossible for the sides to put a new CBA in place.
Three Diamondbacks Minority Owners Sue Managing General Partner
A trio of Diamondbacks minority owners have filed a lawsuit against the franchise’s managing general partner Ken Kendrick, according to a report from Zach Buchanan of The Athletic. The plaintiffs allege that Kendrick illegally forced them to either increase their stake in the Diamondbacks or have their shares bought out by the team. Kendrick argues that he and the team were within their rights to issue such an ultimatum.
The dispute stems from a letter in which Kendrick instructed minority owners with stakes of less than one percent to either increase their share to at least that threshold or to sell their shares back to the team at a price determined by a third-party appraiser. That decision was motivated by the Diamondbacks’ desire to “streamline its ownership group” and decrease the number of owners with minimal stakes in the franchise.
That initiative was backed by MLB, which “prefers” that teams maintain smaller ownership groups to facilitate more efficient governance. However, the suing owners argue that since the idea originated with the Diamondbacks and was brought to MLB for approval, the minority owners maintain their status as eligible holders.
For what it’s worth, Buchanan went on to say via Twitter that the lawsuit is in no way related to the team’s ballpark concerns, which have prompted rumors about relocation. Since the three stakeholders involved in the lawsuit all own less than one percent of the team, Buchanan says, “they have no governing power over it,” and therefore the franchise could relocate with them on board. Kendrick and team president and CEO Derrick Hall spoke in February about the team’s stadium situation, hinting at a persisting hope to construct a new ballpark (be it in Arizona or elsewhere). The team’s stadium lease with Maricopa County would allow the D-Backs to leave Chase Field as early as 2022.
It’ll be a story worth following as the suit progresses, and we’ll be sure to provide updates for you as they come.
Latest On Diamondbacks’ Front Office
With chief strategy officer Tony La Russa losing his hold on the Diamondbacks’ baseball department and Dave Stewart now out as general manager, the club is set for its fourth regime change in six-plus years. That lack of stability has some executives around the majors wary of working for the organization, reports Nick Piecoro of the Arizona Republic.
“Do they give the next person a six-year contract and come hell or high water they’re not going to fire them?” one rival exec asked Piecoro. “Or have they demonstrated this is how they do business and if things don’t work out in 24 -36 months they’ll make more changes? Moving your family for that level of insecurity, juxtaposed to the security that some of us have — that’s a tough sell to the family.”
One potential GM candidate whose name has come up in other teams’ searches informed Piecoro his interest in taking over the Diamondbacks would be “zero” because of “some of the dysfunction up there.” Other executives Piecoro spoke to are also leery of the job, with some expressing concern over the personalities of owner Ken Kendrick and CEO Derrick Hall. The latter signed an eight-year contract extension in August, so any new hire(s) will have to coexist with him and Kendrick for the long haul. Despite that, Hall doesn’t expect the team to have difficulty finding executives willing to take the helm in Arizona.
In regards to GM jobs, Hall said Monday, “There’s only 30 of these. And they’re special jobs and there are a lot of qualified people out there who are looking for that opportunity. We’re hoping the next person is in that role for a long time and that will be expressed.”
Another rival executive backed Kendrick and Hall, saying, “Listen, you have to be skeptical with that amount of turnover. But absolutely, 100 percent, you can win there with those guys.”
In a move that could perhaps help scare off potential hires, Diamondbacks ownership reportedly blocked a trade that would have sent struggling right-hander Shelby Miller to Miami over the summer. Nevertheless, Hall is content with the organization’s decision-making structure.
“It’s very common with all 30 clubs, where if you’re going to have a large decision to make, a very big decision, an impactful decision, it’s going to go all the way up the flagpole and everybody is going to weigh in, whether it is the owner of any ballclub – the owner, president, GM, all opinions are going to be weighed at that time,” said Hall. “It’s a matter of allowing people to do their jobs but also weighing in when there’s a matter of extreme importance, which I think is not uncommon anywhere.”
Stewart didn’t speak negatively of either Kendrick or Hall after his dismissal. However, Stewart did reveal that he and Kendrick “were oil and water” in terms of their personalities. On whether the franchise was too quick to ax Stewart after hiring him in September 2014, Kendrick offered, “Since Dave Stewart was hired two years ago, there have been 16 general managers hired. Sixteeen. What does that tell you? It’s a tough business” (Twitter link via Piecoro).
Stewart’s successor could be someone with past Diamondbacks experience, per USA Today’s Bob Nightengale, who points to Brewers scouting director Ray Montgomery as a “natural strong candidate” (Twitter link). The 47-year-old Montgomery was previously the D-backs’ scouting director from 2010-14.