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Damian Lillard signs 3-year deal with Trail Blazers

Nine-time All-Star Damian Lillard will return to the Portland Trail Blazers on a three-year, $42 million contract. ESPN’s Shams Charania first reported.

Lillard is expected to have player options in 2027-28 and in the No Trade Terms. He was stretched and abandoned by the Milwaukee Bucks a few weeks ago, opening the door to signing with any team as a free agent.

Lillard will look for competitors and there are many speculations. He reportedly had multiple intermediate exceptions and minimum contracts. Instead, Lillard chose to return to the team that drafted him, and his best years in professional players.

Between the Bucks and the Trail Blazers, Lillard will make $70 million in 2025-26 and $71 million in 2026-27. He is not expected to play next season and focus only on repairing the ruptured Achilles tendon.

After 11 years in Portland, Lillard traded with the Trail Blazers along with Jusuf Nurkic, Nassir Little and Keon Johnson, as well as three teams involving the Bucks and Phoenix Suns. Jrue Holiday, DeAndre Ayton, Toumani Camara, first-round picks in 2029 and two first-round picks exchanges in 2028 and sent to a blazer in 2030.

Now, Holiday and Lillard are on the same team, and Ayton moves to the Los Angeles Lakers.

Lillard puts the championship wish aside?

When Lillard first left Portland, it was to get better shots in the championship game. His Bucks tenure was not eliminated as he thought. Giannis Antetokounmpo and Lillard both suffer injuries, with the playoffs hoping for each of the past two seasons.

Antetokounmpo missed the playoffs in 2024, while Lillard missed the first round almost in 2025.

The core of the reward is a desire to be close to his family.

Portland has established a solid core for young players including Camara, Deni Avdija, Donovan Clingan and recently drafted Yang Hansen. Shaedon Sharpe also showed impressive scoring potential, and Scoot Henderson took a step forward last season.

Lillard and the Holidays will be very useful for the roster from a leadership perspective. Lillard is one of the greatest players in franchise history and will undoubtedly have the ears of young players.

Given the short-term nature of the contract, there is little risk on the Trail Blazers’ iconic player side.

Lillard is the franchise leader in total points, three-pointers and assists.

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