"Beyond the sheer need for long-term help in the rotation, there’s surely an element of financial creativity at play here. Darvish’s preexisting six-year, $126MM contract came with a $21MM luxury hit (based on the contract’s AAV). Since this new deal is being tacked onto the end of that old contract, it effectively becomes an 11-year, $216MM deal. That comes with a reduced luxury hit of $19.64MM. It’s not a major savings, but the Padres were right up against the third tier of luxury penalization, so any newly created breathing room is quite welcome. Once crossing into that third luxury tier, a team is penalized not only in the form of steeper tax rates but also by having their top pick in the next year’s draft dropped by 10 places."
mlbtr wrote that
can't really think of that as the primary motivation for this though. extending an old pitcher until he is 41 in order to save $2M in luxury tax space this season seems... funny