KANSAS CITY, Mo. (AP) — Right-hander Seth Lugo and the Kansas City Royals agreed to a $46 million, two-year contract for 2026 and ’27 on Monday, 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 agenct after this year’s World Series. He is in the second year of a two-year, $20 million deal that included a player option for next season.
His new agreement includes 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.
Lugo made his first All-Star Game and won his first Gold Glove last season, when he went 16-9 with a 3.00 ERA. And he has been arguably better this season, going 7-5 with a 2.95 ERA through his first 19 outings.
Rumors surfaced of several contenders interested in trading for Lugo ahead of Thursday’s deadline, and the fact 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 that Kansas City was committing to the stretch run came when it 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 that Lugo remains big a part of their future with his deal — an especially timely one given it was agreed to late Sunday, the same day that All-Star pitcher Kris Bubic went on the injured list.
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 that their return to the rotation will propel them down the stretch.
The Royals were four games back of the final AL wild card spot as they opened a series against Atlanta on Monday night.
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