KANSAS CITY, Mo. (AP) — Right-hander Seth Lugo and the Kansas City Royals agreed Monday to a $46 million, two-year contract for 2026 and '27, a signal the team intends to push for a second consecutive playoff appearance rather than sell ahead of this week's trade deadline.
The 35-year-old Lugo could have become a free agent after this year's World Series; he is in the second season of a $20 million, two-year deal that included a player option for next season. Now, he will get a $3 million signing bonus, salaries of $20 million each in 2026 and '27, and a $17 million club option for 2028 with a $3 million buyout. The 2028 salary could vest at $20 million.
“I mean, with (trade) rumors that came up over the past month, I wanted to be here,” Lugo said before the Royals opened a three-game series against the Atlanta Braves on Monday night. “Seeing there was a possibility to leave — I didn't want that to happen.”
The Royals were four games back of the final American League wild-card spot entering Monday night's games.
After a breakout season as a starter in San Diego two years ago, Lugo signed as a free agent with Kansas City before the 2024 season. He proceeded to make his first All-Star Game and win his first Gold Glove while going 16-9 with a 3.00 ERA.
He's been arguably better this season, too, going 7-5 with a 2.95 ERA through his first 19 outings.
“This is one less distraction. Seth is pitching tomorrow," Royals general manager J.J. Picollo said of the trade speculation involving Lugo. “He doesn't have to take the mound wondering if this is his last start. He might have done that last week. He doesn't have to worry now, and the rest of the team can follow suit.”
Indeed, rumors had surfaced of several contenders interested in Lugo ahead of Thursday's deadline. That the Royals have been hanging on the fringe of contention themselves left many wondering whether they would be buyers or sellers.
The first sign Kansas City was committing to the stretch run came when it acquired outfielder Randal Grichuk from the Diamondbacks for reliever Andrew Hoffmann late Saturday, shoring up a weakness in the lineup by adding a right-handed bat.
Now, the Royals have indicated Lugo remains a big part of their future with his deal — an especially timely one given it was agreed to late Sunday, the same day All-Star pitcher Kris Bubic went on the injured list with a rotator cuff strain.
Bubic will miss the rest of the season.
Kansas City also is missing starters Cole Ragans and Michael Lorenzen because of injuries. Both are expected back at some point in August, and the Royals are hopeful their return to the rotation will propel them into another postseason.
“What we were able to do last year — we know it's in the past, but it was an accomplishment,” Picollo said, "and hopefully the start of a window of winning seasons and getting to the playoffs and being competitive.
“If we're not able to execute this extension,” he continued, “we're in the market for a pitcher that is going to get paid very well and may not be of Seth's caliber, and it allows us to keep pushing forward not only this year but also in ‘26 and ’27.”
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AP MLB: https://apnews.com/hub/mlb
Dave Skretta, The Associated Press
