Nine-time NBA All-Star Damian Lillard has agreed to a three-year, $42 million contract to return to the Portland Trail Blazers. The deal includes a player option for the 2027–28 season and a no-trade clause.
Lillard’s return marks a homecoming, as he spent the first 11 years of his 13-year career in Portland before being traded to the Milwaukee Bucks in 2023. He played the last two seasons in Milwaukee, earning All-Star honors both seasons. However, he was limited to just 58 games in the 2024–25 season due to deep vein thrombosis. He returned during the postseason but suffered a torn left Achilles in Game 4 of the Bucks’ first-round series against the Indiana Pacers. He underwent surgery in early May and is expected to miss the entire 2025–26 season as he recovers.
Earlier this month, the Bucks waived Lillard to stretch the remaining $113 million on his contract to free up cap space and finalize the signing of free agent center Myles Turner. As a result, Milwaukee will pay Lillard more than $22 million annually over the next five years.
Lillard prioritized a return to Portland, where his family and children live. According to sources, he received interest from multiple contenders offering midlevel and minimum contracts, but ultimately chose to return to the franchise where he built his legacy.
The Trail Blazers considered his injury timeline when negotiating the deal. With the entire 2025–26 season likely serving as a rehab year, the contract allows Lillard to recover in Portland and make a potential return to the court in 2026–27.
Portland originally traded Lillard to the Bucks in 2023 for Jrue Holiday, Toumani Camara, and draft assets. They later flipped Holiday to the Boston Celtics in exchange for Robert Williams III, Malcolm Brogdon, and additional draft assets, one of which was used to acquire Deni Avdija. This offseason, the Blazers reacquired Holiday in a trade with Boston, and Portland now has Lillard, Holiday, Avdija, Williams, Camara, a 2029 first-round pick, and two Bucks pick swaps.
The Trail Blazers finished last season strong, going 22–18 to close the year. They ranked in the top five in overall defense and third in transition defense during that stretch, providing a promising foundation for the future.
Lillard’s return offers a storybook ending to a remarkable career. He led Portland to eight playoff appearances, including a trip to the Western Conference Finals in 2019. He is the franchise’s all-time leader in points with 19,376 and three-pointers with 2,387, and ranks second in assists with 5,151. Including both the regular season and playoffs, Lillard has recorded seven 55-point games for the Trail Blazers, more than any other player in team history.
Now back where he started his NBA career, Lillard looks to write the final chapter of his storied career with the team that drafted him.
