Right-handed pitcher Seth Lugo is reportedly nearing a two-year contract extension worth $46 million with the Kansas City Royals, according to sources cited by ESPN. This agreement removes one of the top potential trade assets from the market just days before the Thursday deadline, highlighting the Royals’ determination to contend for a playoff position in a competitive American League.
Under the terms of the deal, Lugo will earn $20 million annually, along with a $3 million signing bonus. The contract also includes a vesting option for a third year at $20 million, or a $17 million club option with a $3 million buyout.
At 35 years old, Lugo finished as the runner-up for the AL Cy Young award last season and has continued to perform impressively in 2025, posting a 2.95 ERA across 113 innings. Originally expected to turn down a $15 million player option for the 2026 season and enter free agency, Lugo indicated a preference to remain with the Royals, leading to the negotiation of this extension as he aims to contribute to one of Major League Baseball’s strongest rotations.
Lugo’s outstanding play was pivotal during Kansas City’s unexpected postseason appearance in 2024. Despite a rough stretch in June, where they went 8-18, the Royals bounced back with a solid 13-8 record in July and find themselves at 52-54, just four games behind Seattle and Texas for the American League’s final wild-card spot.
The Royals demonstrated their commitment to pursuing a playoff berth earlier this week by trading for outfielder Randal Grichuk from Arizona in exchange for reliever Andrew Hoffmann. The team is currently dealing with some injury adversity on the pitching front; All-Star left-hander Kris Bubic has been placed on the injured list due to a rotator cuff strain, and ace Cole Ragans is also sidelined with a shoulder issue but has begun throwing again, hinting at a potential return. Additionally, right-hander Michael Lorenzen is closing in on a comeback from an oblique strain, while lefty reliever Daniel Lynch IV is on a rehabilitation assignment, providing optimism that the Royals’ pitching unit may be fully operational as they head into the critical stretch of the season.
Lugo is expected to be a central figure in this pitching staff. After debuting with the New York Mets at 26, he established himself as a reliable reliever over five seasons before signing with San Diego in 2023 and transitioning to a starting role. He logged an impressive 8-7 record with a 3.57 ERA, which was enough for Kansas City to offer him a three-year, $45 million contract.
Lugo boasts a diverse pitch repertoire, including two types of fastballs, three sliders, two curveballs, a changeup, a splitter, and a cutter. He set a personal record by pitching 206⅔ innings in his first season with the Royals, achieving a stellar 3.00 ERA.
Though his advanced metrics this season indicate a potential decline in performance, Lugo’s ERA still ranks him 10th in the AL, and he has provided stability to a pitching staff that is considered among the elite in the majors when healthy, featuring Lugo, Ragans, Bubic, Lorenzen, Michael Wacha, and rookie Noah Cameron.
