Cole Ragans signs three-year, $13.25 million contract

The deal buys out two years of arbitration.

Cole Ragans had a breakout season in 2024, and now he’ll reap some of the rewards. Jeff Passan of ESPN is reporting that the Royals have signed the left-hander to a three-year, $13.25 million deal. The contract will begin this year, and include his first two arbitration seasons. It doesn’t buy out any free agent years, but does give both sides some certainty over the next few years.

Ragans was not yet eligible for arbitration this year, so he was due to make just a bit over the league minimum of $760,000. Typically players earn about 30 percent of market value in their first year of arbitration and 50 percent in their second year of arbitration. Justin Steele, a pretty similar pitcher who had a breakout season just before hitting his first year of arbitration, earned $4 million in his first year, and $6.55 million in his second year of arbitration.

Ragans will earn more than that, plus if he stays healthy he can still benefit from the third year of arbitration, when players typically earn about 75 percent of market value. Ragans will be eligible for free agency for the 2029 season, when he will be 31 years old. Ragans has had two Tommy John surgeries in his career, so there is a substantial injury risk. But the financial commitment won’t break the bank, and the commitment by both sides is a good sign.

The Royals acquired Ragans from the Rangers in the summer of 2023, and he has excelled ever since coming to Kansas City. He earned his first All-Star appearance and finished fourth in Cy Young voting last year, posting a 3.14 ERA and finishing second in strikeouts in the American League with 223. He ended the year with 4.9 fWAR, second-best among all AL pitchers.