The MLB Winter Meetings exploded with major free agency drama Tuesday as two of the league’s most high-profile players signed massive contracts that reshaped the offseason landscape. Kyle Schwarber returned to the Philadelphia Phillies on a five-year, $150 million contract, while elite closer Edwin Díaz agreed to a three-year, $69 million deal with the Los Angeles Dodgers. The signings represent the first massive dominos to fall at the annual meetings in Orlando, Florida.
The big-money moves immediately energized front offices and set the tone for what could become one of baseball’s most aggressive free agent periods in years.
Schwarber’s Historic Return to Philadelphia
The Phillies secured one of the sport’s most dangerous power hitters by bringing back Kyle Schwarber, who captured the 2025 National League home run title with 56 homers and 132 RBIs. His deal is extraordinary even within modern baseball: a full-time designated hitter commanding $150 million over five years has rarely been seen.
The contract keeps Schwarber under Phillies control through the 2030 season, cementing Philadelphia’s long-term commitment to building around offensive star power. The team previously extended a qualifying offer worth $22.025 million but ultimately closed a far larger agreement to ensure Schwarber stayed in red and white.
Phillies ownership signaled they are all-in on championship contention, maintaining payroll levels near luxury tax thresholds and prioritizing offensive stability.
Díaz Joins Dodgers in Record-Setting Contract
Meanwhile, the Dodgers solved their lingering bullpen challenges by landing superstar closer Edwin Díaz. The three-year, $69 million contract sets a new record for average annual value for a relief pitcher, underscoring Díaz’s status as the most coveted bullpen arm on the market.
Díaz opted out of his prior deal with the New York Mets and entered free agency seeking a team positioned for deep postseason contention. After posting a stellar 1.63 ERA and 28 saves last season, he drew heavy interest across the league, but the Dodgers ultimately secured his services.
For Los Angeles, the move addresses a long-standing ninth-inning weakness that plagued the team throughout 2025. The Dodgers now possess a lockdown closer to anchor their pitching staff as they push toward another World Series run.
A Domino Effect Just Beginning
| Player | Team | Contract |
|---|---|---|
| Kyle Schwarber | Philadelphia Phillies | 5 years, $150 million |
| Edwin Díaz | Los Angeles Dodgers | 3 years, $69 million |
Several major teams reportedly pursued Schwarber, including the Red Sox, Reds, and Pirates, before he re-signed with the Phillies. Likewise, the Mets were stunned to lose Díaz to a rival contender, creating immediate bullpen uncertainty in Queens.
The MLB Winter Meetings continue through the week with more potential blockbusters looming. Top free agents remain unsigned, and league insiders expect increased movement over the next 72 hours.
Impact on 2026 Season Outlook
These signings signal championship-level intent from both Philadelphia and Los Angeles. Schwarber adds unmatched power consistency to the Phillies lineup, while Díaz provides postseason-ready reliability to the Dodgers bullpen.
Other contenders now face increased urgency to upgrade rosters before the available talent pool thins.
“The first major free agent hitter domino has fallen at these winter meetings.”
— CBS Sports
The stage is set for a high-velocity offseason with major implications for next year’s pennant races.
