The Kansas City Royals have finalized a three-year contract with star pitcher Cole Ragans, valued at $13.25 million. This deal encompasses the current season as well as Ragans’ first two years of arbitration eligibility, according to Jeff Passan from ESPN. Importantly, this signing does not alter Kansas City’s control over the player, who is under contract until the end of 2028.

Details from Mark Feinsand at MLB.com reveal that Ragans will receive a signing bonus of $250,000 and a salary of $1 million for the upcoming season. His earnings will then rise to $4.5 million in the second year and $7.5 million in the third year of the deal. Notably, if Ragans secures the Cy Young Award within the next two years, his 2027 salary could increase to $8 million.

With just over two years of Major League Baseball experience, Ragans did not qualify as a Super Two player, meaning he is not eligible for early arbitration. Had he not secured this deal, he would have played the upcoming season on a salary around the $760,000 league minimum before going into arbitration next year. This agreement not only provides him with a salary increase in the current season but also gives the Royals stability in managing his earnings over the first two arbitration years. Without any new contracts, Ragans will enter the arbitration process once during the 2027-28 offseason before becoming a free agent.

Ragans was acquired from the Texas Rangers in June 2023 trade that involved Aroldis Chapman, and he has since emerged as one of the elite pitchers in the league. After the trade, he posted an impressive earned run average (ERA) of 2.64 across 12 starts. Despite facing primarily less challenging opponents, the 6’4″ left-hander confirmed his talent by concluding the last season with a full 32 starts, achieving a 3.14 ERA over 186.1 innings. He ranked fifth in MLB with 223 strikeouts and secured fourth place in the American League Cy Young voting.

This extension is relatively unique, as there are few precedents for players signing contracts two to three years ahead of their final pre-arbitration season. Ragans’ projected salaries align closely with the earnings expected for top starting pitchers entering their initial arbitration years. For reference, Tanner Houck ($3.95 million) and George Kirby ($4.3 million) agreed to comparable salaries for their first arbitration seasons this offseason. Meanwhile, Logan Gilbert is projected to earn $7.625 million during his second arbitration round.

While Ragans was unlikely to be non-tendered unless an unforeseen injury occurred, this contract provides significant financial security for the next few seasons. The Royals gain clearer insight into their future financial commitments, avoiding the potential challenges of arbitration hearings with their star pitcher in the next two offseasons. Having recently turned 27, Ragans is positioned to enter free agency ahead of his age-31 season.

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