Seth Lugo, Royals Reportedly Finalizing $46M Contract Extension Amid MLB Trade Rumors

There was plenty of speculation that the Kansas City Royals would trade Seth Lugo before the deadline, but the star ace isn't going anywhere this season.

Per ESPN's Jeff Passan, Lugo is finalizing a multi-year contract extension to stay with the Royals. Anne Rogers of MLB.com reported it will be a two-year deal with a vesting option for 2028, and Jon Heyman of the New York Post noted the extension will be worth about $46 million.

The extension comes amid what has been another fantastic season for the 35-year-old Lugo. He's recorded a 2.95 ERA and a 1.09 WHIP across 19 starts, on pace for one of the best years of his career.

But Lugo's individual success hasn't been enough to propel the Royals to wins as Kansas City sits four games back in the wild card race at 52-54.

Because of Kansas City's struggles this year, Lugo has been a name to watch on the trade market in recent weeks. USA Today's Bob Nightengale reported in early July that teams were "starting to closely scout" Lugo and believe he'd be on the trade block if the Royals "were out of the race."

Ultimately, Kansas City opted not to sell at the deadline, and now the Royals will get a few more years of Lugo.

On his old deal, Lugo had a player option for the 2026 season and was widely expected to opt out and hit the free agent market, where he would've been one of the best available pitchers. Instead, he was ready to commit to his current team.

Lugo spent his first seven seasons in the majors with the New York Mets before signing a one-year deal with the San Diego Padres ahead of the 2023 campaign.

Lugo made the transition to starter in San Diego, and it quickly became apparent that he was a strong fit for that role. In his first year with the Royals last season, he recorded a 3.00 ERA and a 1.09 WHIP with a 16-9 record, finishing second in AL Cy Young Award voting.

Now committed to the Royals, Lugo will look to continue his strong season and help the team make a push for the postseason.