Financial terms disclosed for Seth Lugo's two-year commitment with the Kansas City Royals, totaling $46 million across the 2026 and 2027 seasons.
Seth Lugo's Contract with the Royals: Key Details
After ink dries on the contract, Seth Lugo will be due for a physical at the end of the 2027 season. This is a crucial step that sets the stage for the vesting option in the following year.
The salary for the 2027 season stands at $20 million, as previously announced. However, the base salary for this year is not specified in the contract.
In 2028, an interesting twist unfolds. Lugo's contract includes a vesting option of a whopping $20 million, or alternatively, a club option of $17 million. The vesting option automatically activates if Lugo pitches a combined 335 innings in the 2026 and 2027 seasons, or if he manages to pitch 190 innings in 2027 alone.
If Lugo fails to reach these thresholds, the Royals have the option to exercise a $17 million club option for the 2028 season, with a $3 million buyout instead.
The signing bonus for the contract amounts to $3 million, with $1.5 million payable within 30 days of Major League Baseball's approval, and the remaining $1.5 million payable on January 15, 2026.
The 2026 salary, as previously stated, is also $20 million. The payable amount of the signing bonus after MLB's approval remains at $1.5 million. The remaining $1.5 million of the signing bonus is due on January 15, 2026.
This contract, if all conditions are met, could potentially earn Lugo up to $63 million across the 2026, 2027, and 2028 seasons, including the signing bonus and salaries for these years.
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