Royals may not make top trade target available

Kansas City Royals pitcher Seth Lugo is a popular name as the July 31 trade deadline approaches.

Jon Morosi from MLB Network reported on Tuesday that the Cubs have reached out to the Royals regarding their pitching. At the time, the Royals were considered most likely to trade Lugo as he has an opt-out option after this season.

Those thoughts may have changed. ESPN's Buster Olney reported that rival executives do not feel that the Royals are particularly interested in dealing Lugo. Instead, the Royals could use the days ahead of the deadline to attempt to sign Lugo to an extension.

Coming off a solid year as a starting pitcher for the Padres in 2023, Lugo signed a two-year, $30 million contract with a $15 million player option for 2026. He has exceeded even the most optimistic expectations during his time in Kansas City, posting a 2.98 ERA and a 1.089 WHiP over his 319.2 innings, striking out 280 batters with 81 walks. Lugo has established himself as a top-of-the-rotation arm in one of the best rotations in Major League Baseball.

The Royals found themselves in a similar situation last year with pitcher Michael Wacha. He had signed a two-year contract during the 2023-24 offseason with a player option for 2025. The Royals ended up signing him to a three-year extension worth $51 million with a $14 million team option for 2028 days before the deadline for Wacha to exercise his opt-out clause. 

Lugo would be valuable as a trade chip for the Royals as they look to improve their lineup going forward. The outfield is a particularly weak spot and trading Lugo could bring back a desperately needed hitter. Instead, his value to the rotation may be considered more valuable by the Royals front office, leading to his staying in Kansas City at the deadline as both sides work on an extension.