Report: Royals, Lugo finalizing 2-year deal worth around $46M

The Kansas City Royals and right-hander Seth Lugo are finalizing a multi-year contract extension, sources told Jeff Passan of ESPN.

Lugo's pact will be worth about $46 million over two years with a vesting option for the 2028 campaign, according to Jon Heyman of MLB Network.

The 2024 AL Cy Young runner-up had a $15-million player option for 2026 before the reported new deal. He was thought to be one of the top potential starting pitchers available before Thursday's trade deadline.

The 35-year-old owns a 2.95 ERA with 1.09 WHIP and 99 strikeouts over 113 innings (19 starts) this season.

The Royals traded for outfielder Randal Grichuk on Saturday despite sitting four games out of the AL's final wild-card spot, an indication they won't be sellers at the deadline.