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Kansas City Royals right-hander Seth Lugo is finalizing a contract extension with the club, Jeff Passan of ESPN reports. It's a two-year, $46 million guarantee with a vesting option or a club option, according to Anne Rogers of MLB.com. If not for this extension, Lugo likely would have turned down his $15 million player option for 2026 in the offseason and become a free agent. This new pact also erases any chance of the Royals dealing Lugo before the July 31 trade deadline. It's understandable why the Royals want to keep Lugo, who has been brilliant during his year and a half in their uniform. He finished as the AL Cy Young runner-up to Detroit Tigers ace Tarik Skubal in 2024. The 35-year-old has followed up that performance this season with a 7-5 record, a 2.95 ERA, 99:33 K:BB, and a 1.09 WHIP in 113 innings. Lugo's 4.56 xERA, 4.27 FIP, and 4.07 xFIP each suggest negative regression is on the way, but this is the third season in a row that he has easily outperformed those metrics.--Connor Byrne
Source: Jeff Passan, Anne Rogers
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