Damian Lillard is scheduled to return to the Portland Trail Blazers on a three-year contract worth $42 million, sources told ESPN on July 17, 2025. This move comes just two years after the nine-time NBA All-Star was traded to the Milwaukee Bucks, marking a significant homecoming for the 35-year-old guard.
Details of the Contract and Terms
The deal includes a player option for the 2027-28 season and a no-trade clause, ensuring that Lillard retains considerable control over his future with the Trail Blazers. This contract structure reflects mutual commitment, as both Lillard and Portland have shown strong interest during recent negotiations.
BREAKING: Nine-time NBA All-Star Damian Lillard is finalizing a three-year, $42 million contract to return to the Portland Trail Blazers, sources tell ESPN. Deal is expected to include a player option in 2027-28 and a no-trade clause. A storybook reunion home for the 35-year-old. pic.twitter.com/mm1uUtMgO6— Shams Charania (@ShamsCharania) July 17, 2025
Background: Lillard’s Milwaukee Tenure and Injury
Lillard was traded to Milwaukee in 2023 as part of a major deal involving Jrue Holiday and Toumani Camara. His time with the Bucks was cut short by a torn Achilles sustained during the first round of the playoffs. Afterward, the Bucks waived him, stretching out the remaining two years and $113 million on his original contract to manage their salary cap. This financial maneuver helped Milwaukee acquire center Myles Turner following the departure of Brook Lopez.
Due to the severity of his injury, Lillard is expected to miss the entire 2025-26 season while recovering.
Portland’s Recent Moves and the Team’s Rebuilding Efforts
In the period since trading Lillard, Portland has made several roster changes, including flipping Jrue Holiday to Boston for Robert Williams III, Malcolm Brogdon, and other assets. More recently, they re-acquired Holiday from Boston in exchange for Anfernee Simons, pairing him with Lillard to bolster their veteran guard presence. Despite these moves, Portland remains in a rebuilding phase as it looks to regain competitiveness.
Last season, Lillard averaged 24.9 points and 7.1 assists, shooting 44.8 percent from the field, 37.6 percent from three-point range, and 92.1 percent from the free-throw line. The Trail Blazers hope he can return to this form once fully healed.
Interest from Other Teams Before the Agreement
Before finalizing his return to Portland, Lillard reportedly received multiple offers from other NBA contenders, including the Golden State Warriors, Boston Celtics, and Los Angeles Lakers. These offers ranged from mid-level exceptions to minimum contracts, but ultimately, Lillard and the Trail Blazers prioritized the reunion.
Significance of Lillard’s Return to Portland
This homecoming marks a pivotal moment for both the player and the Trail Blazers. Lillard’s return brings an experienced leader back to a team striving to rebuild its core competitiveness. With the inclusion of the player option and no-trade clause, the agreement provides Lillard with flexibility as he aims to recover from injury and contribute meaningfully. For Portland, securing their former star could be instrumental in shaping their next competitive chapter and restoring hope among fans.