Sources indicate the Kansas City Royals and seasoned right-handed starting pitcher Seth Lugo are approaching a contract extension spanning multiple years, as reported by ESPN. The anticipated financial terms of the agreement include approximately $46 million in total compensation for the 2026 and 2027 seasons, with a vesting option for the 2028 season, according to information from the New York Post.
Lugo, who is 35 years old, has achieved a 2.95 ERA/141 ERA+ this season, accompanied by 99 strikeouts and 32 unintentional walks across 113 innings pitched. This performance follows a 2024 season with Kansas City, during which Lugo attained a career-high WAR of 5.4 and secured the second-place position in the American League Cy Young Award voting, behind Tarik Skubal of the Detroit Tigers. Throughout his career, Lugo has maintained an ERA+ of 123 and a WAR of 19.1 over the course of 10 major-league seasons. His only All-Star recognition occurred last year, which marked his inaugural season with the Royals.
With a current record of 52-54 and a considerable distance from playoff contention in the American League, the Royals were widely expected to engage in trade activities as sellers leading up to the July 31 trade deadline. Consequently, Lugo, who would have become a free agent at the conclusion of the season if he had declined his $15 million player option for 2026, was the subject of extensive trade speculation. In a recent assessment, CBS Sports identified Lugo as the fifth-most likely trade candidate for this year’s deadline. However, these circumstances have now shifted, and he is poised to be removed from the trade market, further diminishing what was already projected to be a limited market for rotational support. Additionally, Lugo will no longer be considered a part of the 2025-26 free-agent class. Similar to the dynamics of the current trade market, the upcoming offseason featured limited options for high-caliber rotation assistance, and the retention of Lugo exacerbates this situation.
From the Royals’ perspective, retaining a high-quality frontline starting pitcher is advantageous as they aim to return to contention in 2026 and subsequent years. Besides Lugo, two other pitchers in the Kansas City rotation, Cole Ragans and Michael Wacha, are under contract through at least the 2027 season.
“We are a significantly stronger team with Seth Lugo on the roster compared to without him,” Royals president J.J. Picollo stated to reporters on Friday, as reported by the Kansas City Star. “Whether it extends to ’25 or ’26, if you consider trading a player like Seth Lugo, it is essential to ensure that the return acquisition provides a substantial improvement to the team. Removing a pitcher of that caliber from your rotation would fundamentally alter the composition of the team.”
From the viewpoint of the Royals, committing to a pitcher who is approaching his late 30s entails inherent risks, even when considering Lugo’s track record of success under their management. Notably, Lugo’s fastball velocity, FIP, walk rate, and whiff rate have all experienced noticeable declines this season. Nevertheless, the Royals are optimistic that he will be able to mitigate significant performance degradation throughout the duration of the contract.
Concerning the upcoming trade deadline on Thursday, potential starting pitchers who may be available include Mitch Keller from the Pirates, Sandy Alcantara and Edwin Cabrera from the Marlins, Merrill Kelly from the Diamondbacks, and Zac Gallen.
