Royals, Seth Lugo Agree to Two-Year, $46-Million Extension
Seth Lugo is staying in Kansas City after all.
With Thursday’s 6 p.m. ET trade deadline nearly upon us, Lugo was expected to be highly coveted amidst a dangerously thin starting pitching market. But, as it turns out, both sides were more focused on continuing their relationship beyond this season.
On Sunday, the 35-year-old reportedly agreed to a two-year extension worth $46 million, as first reported by ESPN’s Jeff Passan. He’s in the final season of a three-year, $45-million contract that includes a $15 million player option for 2026, which was widely expected to be declined this winter, making him a free agent.
Lugo’s new deal will pay him $20 million per season through 2027 and features a $20 million vesting option in ‘28 that can convert to a $17 million club option ($3 million buyout), per MLB.com’s Anne Rogers. His extension also includes a $3 million signing bonus.
If Lugo triggers his vesting option in Year 3, it’d increase the total value of his contract to a maximum of $63 million, keeping him with the Royals organization through his age-38 season.
The veteran right-hander has been a model of consistency since arriving in Kansas City prior to last season, hence the franchise’s decision to extend him rather than flipping the potential rental at this week’s trade deadline.
Last season, Lugo enjoyed a career year, pitching to a 3.00 ERA and 3.25 FIP with 181 strikeouts – the most of his 10 MLB seasons – en route to his first All-Star Game selection. He also accounted for a career-high 4.6 fWAR over 33 starts, finishing second in AL Cy Young voting in just his second season since converting to a full-time starter.
And he’s continued to impress this season as well.
Despite witnessing an increase in his walk rate (up nearly two percent from 2024) and HR/9 (0.7 to 1.35), Lugo owns a 2.95 ERA across 19 starts thus far, albeit while posting a much higher xERA (4.55) and FIP (4.27). Still, he’s been a constant for the Royals’ injury-riddled rotation.
Kansas City, which enters Monday’s slate four games back of the final AL wild-card seed, has been without ace Cole Ragans (rotator cuff) for nearly two months and placed Michael Lorenzen (oblique) and Kris Bubic (rotator cuff) on the IL earlier this month. And yet, they appear more likely to buy than sell.
The Royals are attempting to spark their struggling offence by acquiring infielder Adam Frazier and outfielder Randal Grichuk – both of whom are pending free agents – via trade over the past few weeks. But several concerns remain for an offence that’s produced the second-fewest home runs (90) in the majors – ahead of only both the Pirates and Padres, who sit last with 89.
There’s also plenty of uncertainty for a rotation that currently features just four starters – Lugo, Michael Wacha, Noah Cameron and the ageless wonder, Rich Hill.
At the same time, it’s clear the Royals haven’t thrown in the towel on their chances of making a late-season playoff push in 2025. So, general manager J. J. Picollo’s work might not be finished just yet.
-Thomas Hall
Twitter: @Hall_Thomas_
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