KANSAS CITY, Mo. — Seth Lugo is staying put.
The right-hander and the Royals are finalizing a two-year, $46 million contract extension that includes a club/vesting option for 2028. The deal features a $3 million signing bonus, $20 million salaries in 2026 and 2027, and a $17 million option for 2028 that can vest at $20 million based on performance thresholds. Lugo is represented by the Ballengee Group.
Lugo, who turns 36 in November, had the ability to opt out of the final year of his three-year, $45 million contract at season’s end. Instead, the Royals moved quickly to keep their rotation anchor, avoiding the possibility of losing him to free agency.
After speculation he might be traded before Thursday’s deadline, Kansas City shifted course, making clear it wanted to keep Lugo long-term. Once the deal is complete, he’ll join Cole Ragans and Michael Wacha as starters under contract through at least 2027.
Lugo has been one of baseball’s most consistent arms since returning to a starting role in 2023, posting a 2.95 ERA this season after finishing second in AL Cy Young voting in 2024. He’s thrown 466 innings with a 3.17 ERA over the past three years, powered by elite spin rates and excellent control.