Royals reach contract extension with All-Star starting pitcher Seth Lugo: source
The Kansas City Royals have invested in their starting rotation again.
On Sunday evening, a source confirmed the Royals are finalizing a two-year contract extension with All-Star pitcher Seth Lugo. ESPN insider Jeff Passan was first to report the news.
The terms of the deal have not been disclosed, but MLB insider John Heyman reported the extension is worth $46 million, with a vesting option for the 2028 season.
Lugo, 35, joined the Royals ahead of the 2024 offseason. The right-hander arrived in KC after spending one season with the San Diego Padres, where he returned to a full-time starting role after pitching out of the bullpen.
The Royals offered Lugo a prime slot in their starting rotation. He had previously signed a two-year contract with KC with a player option for the 2026 season. The favorable contract became a hot topic leading into the Major League Baseball trade deadline, which arrives Thursday at 5 p.m. Central Time.
Lugo had the ability to opt out and test free agency this coming offseason. It is likely that he would’ve fetched a new contract worth more than the $15 million player option on his contract. And that led to widespread rumors that he could be moved this month.
The Royals effectively put an end to those trade rumors on Sunday. Lugo will remain in Kansas City for the long haul, alongside fellow top-level starters Michael Wacha, Cole Ragans, Kris Bubic and Noah Cameron.
And for good reason. Lugo posted a 23-14 record and a 2.98 ERA in 52 career starts with the Royals. He finished runner-up for the 2024 American League Cy Young Award and took home a Rawlings Gold Glove award this past offseason.
The Royals rave about his leadership. He has taken multiple pitchers under his wing. Both Lugo and Wacha were instrumental in creating in-game huddles for the starting pitchers last season. Camraderie is evident as the starters watch bullpen sessions together and bounce ideas off one another.
Currently, though, the Royals are without Ragans as well as fellow starters Michael Lorenzen and Kris Bubic. That rotation trio is on the injured list with various issues. Through it all, Lugo has remained a steady presence with a multitude of pitches.
The Royals (52-54) are looking to make a second-half postseason run. With Lugo in the fold, there is still a chance the organization can return to the playoffs for a second year in a row, via an American League Wild Card berth.
As Royals general manager J.J. Picollo reiterated on Friday, the Royals will not be sellers at the trade deadline. By extending Lugo’s contract, Kansas City has doubled down on the future and taken one of the biggest trade names off the board just days ahead of this year’s deadline.
This story was originally published July 27, 2025 at 9:38 PM with the headline "Royals reach contract extension with All-Star starting pitcher Seth Lugo: source."
