Yankees trade talks: Jasson Dominguez for Seth Lugo to fix rotation

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NEW YORK — With injuries thinning out their rotation and October aspirations clouded by inconsistency, the New York Yankees may explore the option to land veteran right-hander Seth Lugo from the Kansas City Royals. In a bold move reflective of win-now urgency, the Yankees are willing to trade former top prospect Jasson Dominguez, along with fellow outfielder Everson Pereira, for the Royals’ surprise ace.

According to multiple league insiders, the Yankees seek a reliable arm to anchor a rotation now missing Gerrit Cole and navigating the uncertainty surrounding Marcus Stroman. Kansas City, falling behind in the AL Central, may choose to sell high on Lugo, who is enjoying a career year, and reinvest in two outfielders with star upside and long-term control.

Insiders Kiley McDaniel and Jeff Passan predicts a 40% chance of the Royals putting their ace up for a trade in July 2025.

Rotation reinforcement a key Yankees need

Despite a strong overall record, the Yankees’ foundation is fragile. Cole is out for the year. Stroman’s knee injury has set him back, and Rodon remains a volatile mix of dominance and collapse. Young arms like Will Warren and Allan Winans have shown flashes but cannot be leaned on down the stretch.

That leaves a significant void — one Lugo could fill immediately.

The 35-year-old Lugo has turned in a stellar 2025, boasting a 2.74 ERA and 82.2 innings pitched through late June, with a WHIP around 1.08 and 76 strikeouts. His blend of command, veteran savvy, and pitch diversity has turned him from a backend filler into a coveted asset.

“He’s the most underrated pitcher in baseball right now,” said one American League scout. “He attacks the zone, eats innings, and competes with no fear. For a playoff-bound team, that’s gold.”

Lugo is signed through 2025 at $15 million with a player option for 2026, adding financial flexibility for contenders — and competition.

He leads the Royals in innings and has logged 11 quality starts in 15 outings. His pitch mix — especially a darting two-seamer and a sharp curveball — has limited hitters to a .221 batting average against.

Dominguez the headliner, but outfield picture evolving

The inclusion of Dominguez — once dubbed “The Martian” for his otherworldly tools — would mark a seismic shift in the Yankees’ player development approach. But the timing may be right.

At 22, Dominguez has battled injuries, most notably Tommy John surgery that shelved him for long. Though his raw power and disciplined eye remain intact, questions linger about his durability and long-term position in the field. His 2025 is far from the promise displayed in 2023. In 68 games since returning from the injured list in June, Dominguez is slashing .250/.337/.391 with six homers and 27 RBIs. His OPS sits at .733, while striking out 73 times.

“There’s still star upside,” noted a National League evaluator. “But if you can get a No. 2 starter for a player who hasn’t stayed on the field, that’s a tough deal to walk away from.”

Also factoring into the Yankees’ thinking: the rise of Spencer Jones. The towering 6-foot-6 outfielder has climbed to Triple-A and is showcasing elite exit velocity, gap power, and improved defense. With Aaron Judge, Cody Bellinger, and Trent Grisham all active, Jones may slot in more seamlessly in place of Dominguez.

“Jones might be the reason they’re comfortable doing this,” said a Yankees insider. “He’s turning heads. The swing-and-miss has come down, the maturity is there, and the power is real.”

Pereira, meanwhile, offers a different package — right-handed pop, plus speed, and above-average arm strength. He’s struggled with contact but remains a top-10 Yankees prospect with everyday potential in the right environment.

Kansas City eyes star power and depth

From the Royals’ perspective, the deal offers both instant buzz and long-term building blocks.

Dominguez’s profile — switch-hitting, athletic, charismatic — would complement Bobby Witt Jr. and Vinnie Pasquantino as a core trio. His marketability and ceiling provide value beyond stat sheets.

Pereira helps round out an outfield mix that currently lacks thump, and he could be given everyday reps without the pressure cooker of Yankee Stadium.

“This is the kind of deal KC hasn’t made enough of,” the scout added. “Lugo’s great, but this is about 2026, 2027, and beyond.”

Yankees face a crowded market

Several postseason hopefuls — including the Dodgers, Orioles, and Mariners — have been linked to Lugo’s trade. But the Yankees may have the edge in talent offered and urgency to act.

New York’s playoff blueprint demands length from starters, especially with the bullpen faltering. Manager Aaron Boone has voiced concerns about overuse, and Lugo could stabilize that by consistently working into the sixth or seventh innings.

“He may not headline Game 1, but Lugo could win you Game 3,” said a rival executive. “And sometimes, that’s the difference in October.”

High risk, high reward

There is no sugarcoating the risk. Lugo is 34, and although healthy this season, has a history of elbow trouble. If he opts out after 2025 or underperforms, the Yankees will have traded two promising outfielders for a half-season rental.

But the alternative — rolling into October with an unstable rotation — carries its own perils.

The Yankees have been here before. They held tight at past deadlines and paid the price. Think Jordan Montgomery flourishing elsewhere. Think Luis Severino’s injuries compounding thin depth.

With the AL lead slipping fast, this might be the window to act.

The clock is ticking

The bullpen’s recent struggles — including blown saves, injuries, and volatility — have exposed the Yankees’ need for length from starters.

Lugo offers that: he’s pitched at least six innings in 13 of his 16 starts, and his walk rate (1.6 BB/9) ranks among the lowest in MLB.

As July nears, the pressure mounts in the Bronx. Championship windows are fleeting. Prospects are promises — not guarantees.

If Seth Lugo becomes the difference between another playoff exit and a deep October run, this deal may be remembered not as a sacrifice, but a savior’s arrival.

“Sometimes you have to risk what’s next,” one Yankees official said anonymously, “to win what’s now.”

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