The Royals and Seth Lugo are in the final stages of negotiating a multi-year contract extension, ESPN’s Jeff Passan reports.  Lugo had the ability to opt out of the final season of his previous three-year, $45MM contract, but instead of facing an opt-out decision this winter, the right-hander will be staying put in Kansas City.  Lugo (who turns 36 in November) is represented by the Ballengee Group.

There wasn’t much doubt that Lugo was going to decline his player option and leave his final $15MM on the table in search of a larger and lengthier guarantee in free agency.  With the Royals also struggling to stay in the playoff race, there was some speculation that K.C. could look to move the veteran prior to Thursday’s deadline.  However, the most recent reporting suggested that not only did the Royals want to keep Lugo beyond July 31, but the club wanted to work out a new contract to convince Lugo to forego his opt-out clause.

Assuming the extension talks indeed cross the finish line, Lugo will join Cole Ragans and Michael Wacha as Royals starters under contract through at least the 2027 season, depending on the specifics of Lugo’s new deal.  Wacha’s three-year, $51MM deal signed last November also came under the specter of a player option, as Wacha had the ability to opt out of his $16MM salary for the 2025 season and test the market.  Ragans inked a three-year, $13.25MM extension last February that was more about cost certainty than team control, as the deal only covers the southpaw through his second arbitration-eligible year — Kansas City still has arb control on Ragan through the 2028 campaign.

Between this trio, breakout rookie Noah Cameron, and the Royals’ remaining year of arbitration control on Kris Bubic, Kansas City’s 2026 rotation may already be set.  This doesn’t include such injured pitchers as Kyle Wright and Alec Marsh, so K.C. has a good deal of pitching depth in place as the club tries to figure out the greater issue of its lack of offense.

Lugo’s career-opening seven-year stint with the Mets saw the righty begin as a starter, before moving into more of a part-time starter/swingman role and then finally as a full-time reliever in 2021-22.  Heading into free agency following the 2022 campaign, Lugo was looking to make a return to the rotation, and landed a two-year, $15MM free agent deal with the Padres that included a player option on the 2024 season.  After a solid year in San Diego, Lugo declined that option and returned to free agency to find his three-year commitment with Kansas City.

Over two-plus seasons since his return to starting pitching, Lugo’s ERA has dropped from 3.57 in 2023 to 3.00 in 2024 and to 2.95 this year.  His SIERAs have remained almost identical in that span, averaging out to a 3.98 number that is probably a fairer reflection of his production than his 3.17 ERA since Opening Day 2023.

More to come…