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Royals sign Seth Lugo to a two-year, $46 million contract extension.

The Royals have signed pitcher Seth Lugo to a contract extension, according to ESPN reporter Jeff Passan. Lugo had a $15 million player option for next year that he was likely to decline.

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.

— Jeff Passan (@JeffPassan) July 28, 2025

Anne Rogers writes the deal is for two years, $46 million with a $20 million vesting option or a $17 million club option.