BREAKING NEWS: Seth Lugo and the Royals are Finalizing A Multiyear Contract Extension

A free agent next year. A potential trade candidate. Now a cornerstone of the rotation. Per Jeff Passan of ESPN, the Royals are in the final stages of negotiating an extension to keep Lugo in Kansas City.
BREAKING: Right-hander Seth Lugo and the Kansas City Royals are finalizing a multiyear contract extension, sources tell ESPN. One of the best potential trade candidates this deadline season -- and top free agent arms this winter -- instead will remain in Kansas City.
— Jeff Passan (@JeffPassan) July 28, 2025
Jon Heyman of the New York Post gives us the general ballpark that the deal will be in (money wise).
Seth Lugo new contract is expected to be for about $46M over 2 years plus a vesting option with KC
— Jon Heyman (@JonHeyman) July 28, 2025
And then Anne Rodgers of MLB.com gives us some specifics on the deal.
Source confirms that Seth Lugo's extension is worth a guaranteed $46 million for two years.
— Anne Rogers (@anne__rogers) July 28, 2025
$20 million each in 2026 and '27. Vesting option is worth $20 million or a club option for $17 million (with $3 million buyout). Lugo also gets a $3 million signing bonus.
Thoughts:
Probably a bit of an overpay for the Royals, but they would’ve lost him this year considering he could’ve opted out. Although, he was a runner-up in the Cy-Young voting last year. I like the extension for Lugo, party because he doesn’t get traded, but also because he has guaranteed money for the (maybe) last few years of his career. Between Michael Wacha, Kris Bubic, and Cole Ragans, this extension ensures a steady rotation for the Royals, if indeed the extension crosses the finish line.
Thanks for reading!