Seth Lugo, Royals reportedly agree to a 2-year, $46 million deal

The Kansas City Royals and right-hander Seth Lugo have reportedly agreed to a two-year contract extension worth $46 million, with a vesting option for a third season in 2028, ESPN reported.

Sources told ESPN that the deal also includes a $3 million signing bonus and could convert into a $20 million vesting option or a $17 million club option with a $3 million buyout. The extension effectively removes Lugo from the trade market just days ahead of Thursday's deadline.

After debuting with the New York Mets at age 26, Lugo established himself as a dependable reliever over five seasons with the team. In 2023, he signed with the San Diego Padres and successfully transitioned into a starting role, posting an 8-7 record with a 3.57 ERA. His strong performance earned him a three-year, $45 million deal with the Kansas City Royals.


Lugo, 35, has been a key figure in Kansas City's rotation since signing a two-year, $30 million deal last offseason. He enjoyed a breakout 2023 campaign, earning his first All-Star selection and a Gold Glove while going 16-9 with a 3.00 ERA. This season, he’s been even sharper, posting a 7-5 record with a 2.95 ERA through 19 starts.

The extension signals Kansas City’s intent to contend, ending speculation about whether they would buy or sell at the deadline. Instead of dealing Lugo, one of the most sought-after arms on the market, the Royals are reinforcing their roster for a playoff run.

On Saturday, they acquired outfielder Randal Grichuk from the Diamondbacks in exchange for reliever Andrew Hoffmann, adding a right-handed bat to address a lineup need. The Lugo extension came the same day All-Star pitcher Kris Bubic was placed on the injured list, underscoring the urgency to solidify the pitching staff.