The Kansas City Royals finally returned to the playoffs in 2024 on the back of their pitching staff. But the 2025 season has not been as kind to them, as they are four games out of the final AL Wild Card spot. With the MLB trade deadline approaching, Kansas City seemed like a potential seller. But the Royals are locking up one of their starters, signing Seth Lugo to a multi-year contract extension, per ESPN's Jeff Passan.

“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,” Passan posted on social media. New York Post insider Jon Heyman reported, “Seth Lugo new contract is expected to be for about $46M over 2 years plus a vesting option with KC.”

Lugo spent the first seven years of his career as a reliever and spot starter for the New York Mets. After a one-year stop in San Diego, he landed in the Royals rotation in 2024. His 16-9 record with a 3.00 ERA in 33 starts earned him his first All-Star bid and a second-place finish in Cy Young voting.

Lugo has been great this year as well, with a 2.95 ERA in 19 starts. The Royals are 10-9 in his starts despite his great numbers. After those great seasons, Lugo could have declined his $15 million player option for 2026. He will be 36 years old when the extension kicks in, so this could be his last big contract.

Lugo stays with the Royals and creates a strong rotation along with Cole Ragans and Kris Bubic. That three-headed monster helped lift them to the playoffs, along with a historic Bobby Witt Jr season, last year. While the results have not been there this year, they believe they can turn it around in 2026.

Stick with ClutchPoints for the latest on Lugo's extension and the entire MLB trade deadline. Could the Royals keep buying?