Royals' latest extension may set the stage for active offseason

The Kansas City Royals have taken one of the best pitchers potentially on the trade block, and in free agency, off the market.

According to ESPN's Jeff Passan, the Royals are finalizing a long-term extension with pitcher Seth Lugo. Jon Heyman from MLB Network reported that Lugo will receive a two-year, $46 million extension with a vesting option for 2028. Rumblings about a potential extension began recently, as opposing teams felt that the Royals were not motivated to deal Lugo ahead of the July 31 trade deadline.

Lugo has been one of the best pitchers in the majors since signing with the Royals during the 2023-24 offseason. He has posted an impressive 2.98 ERA and a 1.089 WHiP in his 319.2 innings in Kansas City, striking out 280 batters with 81 walks.

While the 35-year-old Lugo has been an important part of the Royals' pitching staff, this extension goes beyond what it means for other teams at the trade deadline and during the 2025-26 offseason. The Royals are flipping the script regarding their status as a small-market team, actively working to lock key pieces of their core instead of churning the roster in hopes of catching lightning in a bottle with a cadre of younger players and reclamation projects.

This extension may also send a message about the Royals' offseason plans. It is unlikely that Lugo would receive such an extension if the Royals were content to stand pat with the roster as currently constructed. Instead, ownership's willingness to spend a significant amount to keep Lugo going forward may be a precursor to an active offseason.

The Royals have several holes that need to be addressed, both this season and looking ahead. Outfielder Randal Grichuk is a stopgap to help bolster the lineup, but he could enter free agency in the offseason. Second base has been a black hole as Jonathan India and Michael Massey have been disappointments. Long-term answers for both will likely be atop the Royals' shopping list during the 2025-26 offseason. The decision to extend Lugo is a sign that the Royals are ready to open up the checkbook going forward.