Former Milwaukee Bucks point guard Damian Lillard has agreed to a three-year contract with his old team, the Portland Trail Blazers, worth $42 million, sources told ESPN’s Shams Charania. The deal includes a player option for the 2027-28 season as well as a no-trade clause.

“Being home in Portland, being back with his three kids, was by far the biggest, most important factor in Damian Lillard deciding to return and re-sign with the Trail Blazers,” said Shams Charania during a July 17th edition of SportsCenter. “He was going to spend the year rehabbing his Achilles tear in the Portland area anyway. Returning to the Blazers franchise, even though he requested a trade just two years ago, was something he deeply cared about.”

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

Charania added that several other teams, including the Boston Celtics and Minnesota Timberwolves, had extended offers to Lillard. However, Lillard recently met with Trail Blazers general manager Joe Cronin and head coach Chauncey Billups to mend fences and agree on a new deal.

Prior to being traded to Milwaukee in September of 2023, Damian Lillard spent the first 11 seasons of his career with the Trail Blazers, where he was named an All-Star seven times. Despite an underwhelming tenure with the Bucks, Lillard earned back-to-back All-Star Game appearances while averaging 24.6 points per game in 131 starts.

The Trail Blazers and Celtics won the Damian Lillard trade

The Bucks’ three-way trade with the Trail Blazers is now essentially complete. In 2023, Portland traded Lillard to the Bucks for Jrue Holiday, Toumani Camara, and draft capital. They then turned around Holiday, and sent him to Boston for Robert Williams III, Malcolm Brogdon, and assets (including Deni Avdija). Two years later, the Blazers are left with Lillard, Holiday, Avdija, Williams, Camara, a 2029 first-round pick, and two picks swaps with the Bucks.

The Trail Blazers took the Milwaukee Bucks for a ride. They acquired draft capital, Jrue Holiday, and numerous key rotational pieces while only having to give up Damian Lillard for two years. Meanwhile, the Boston Celtics were able to win a championship during Jrue Holiday’s brief tenure with the team. The Bucks have nothing to show for the Damian Lillard trade. Hell, they weren’t even able to win a playoff series during his tenure.

Credit must be given to Milwaukee and general manager Jon Horst. At least they tried to do something. They put all their chips on the table in order to get Giannis Antetokounmpo a bona fide All-Star teammate to play with. Unfortunately, injuries and the ineptitude of Glenn Rivers doomed the marriage of Giannis and Dame. Hindsight is 20/20, but any general manager in the league would’ve pulled the trigger on that deal in 2023 if they were in Jon Horst’s shoes.

The NEW LOOK Portland Trailblazers

Welcome home, Damian Lillard pic.twitter.com/LluRWPikAL

— Basketball Forever (@bballforever_) July 17, 2025

I also need to make a public apology to Joe Cronin. I am sorry, Mr. Cronin. I wasn’t familiar with your game. I previously mocked the Trail Blazers’ front office when they traded Anfernee Simons for Jure Holiday. While I still feel like they could’ve gotten Holiday for a less valuable player, the addition of Damian Lillard during the 2026-27 season will easily make up for the loss of Simons. So, kudos to Joe Cronin.

It is worth noting that this signing will not have any real impact on the immediate future. In all likelihood, Damian Lillard will still miss the entirety of the 2025-26 season as he recovers from his torn Achilles. Knowing he probably won’t play this coming season makes his release more palatable for Bucks fans, especially because it allowed Milwaukee to sign Myles Turner.

At the end of the day, this really is a feel-good story for Damian Lillard, the Portland Trail Blazers, and the league as a whole. The franchise’s greatest player of all time makes his return to the organization that helped him become the player that he is today. If that doesn’t make you feel something, then you need to get your pulse checked.