Damian Lillard Returning to the Portland Trail Blazers

Damian Lillard is returning to the Portland Trail Blazers on a three-year, $42 million contract, according to ESPN’s Shams Charania:

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.

Lillard now will have a 2025-26 set salary of $70M between his Portland and Milwaukee deals, and a salary of $141M over the next two years ahead of an opt-out in 2027. Blazers officials and Aaron Goodwin of Goodwin Sports Management are finalizing terms this week.

Bill Oram of The Oregonian was first to report a reunion may be in the works:

BREAKING: Damian Lillard’s return to Portland is in the works, with the sides deep in discussions about the franchise icon signing the Trail Blazers while rehabbing from torn Achilles tendon.

Reporter Chris Haynes adds more detail about the reunion between Lillard and the Blazers:

Portland GM Joe Cronin met at the star’s house weeks ago and the two made amends and focused their attention on getting a deal done to give Lillard the opportunity to retire as a Trail Blazer.

Lillard suffered a torn Achilles in April during a first-round game with the Milwaukee Bucks and is expected to be out the majority or all of the upcoming 2025-26 season.

After being waived on July 1 by the Milwaukee Bucks, Lillard was reportedly “open” to signing with a team under the right conditions. Lillard has maintained a residence in Portland even during his tenure with the Bucks. There was a report – which Lillard later refuted – that claimed Lillard had requested to do his Achilles rehabilitation in Portland but was denied by the Bucks.

Damian Lillard spent his first 11 seasons in Portland before requesting a trade and landing with the Milwaukee Bucks two seasons ago for Jrue Holiday, a 2029 first-round pick, and the right to swap first-round picks in 2028 and 2030. In a related move, Portland also traded Jusuf Nurkic, Nassir Little and Keon Johnson to the Phoenix Suns in exchange for Deandre Ayton and Toumani Camara.

UPDATE: Lillard has posted the following video to his account on X, trumpeting his return to Portland with the caption, “RipCityyyyyyyyyyyyyyyyy!!!!!!!!!” The video shows Lillard’s name and No. 0 already with a locker room spot alongside the lockers of current members of the Blazers roster. The end of the video includes the statement, “Together Again,” above Lillard’s signature.

More information will be added as it becomes available.