Sources: Royals reach deals with Seth Lugo, Chris Stratton

The Kansas City Royals continued overhauling one of the worst pitching staffs in the league Tuesday, agreeing on free agent contracts with right-handed starter Seth Lugo and right-handed reliever Chris Stratton, sources told ESPN.

Lugo will receive a three-year, $45 million contract that includes an opt-out after the second season, sources said. Stratton, who won a World Series with the Texas Rangers, received $8 million over two years with an opt-out after the first, as MLB.com first reported.

With left-handed reliever Will Smith agreeing to a deal Monday, Kansas City had refurbished a quarter of its pitching staff, which had a 5.17 ERA, 28th of the 30 teams in Major League Baseball.

Lugo is the headliner, a 34-year-old who, in his first full season starting since 2017, thrived with the San Diego Padres. With a 3.57 ERA, Lugo struck out 140 and walked just 36 in a career-high 146⅓ innings. He opted out of his contract with the Padres and hit free agency, and Kansas City, which has canvassed midtier free agent pitching, made Lugo a priority after a 56-106 season.

The Royals’ foray into higher-priced pitching hasn’t exactly led to positive results in the past. Their five-year, $70 million deal with right-hander Ian Kennedy wound up with him in the bullpen, and deals with Danny Duffy and Gil Meche, though productive for a time, wound up plagued by injuries.

Kansas City’s bullpen was especially a mess last season, and 33-year-old Stratton has been an above-average contributor from there, with a 3.91 ERA since the 2020 season. Splitting time among Pittsburgh, St. Louis and Texas — where he went along with Jordan Montgomery at the trade deadline last year — Stratton was an invaluable arm during the regular season, but he pitched only four innings in the postseason this year, allowing four runs.