Damian Lillard, the Portland Trail Blazers’ longtime franchise icon, is officially heading home. The nine-time All-Star has agreed to a three-year, $42 million contract to re-sign with Portland, ESPN’s Shams Charania reports. 

The deal includes a player option for 2027–28 and a full no-trade clause, underscoring Lillard’s control and commitment to finish his career where it began.

Portland will serve as a recovery platform for Lillard, who is expected to miss the entire 2025-26 season while rehabbing a torn Achilles sustained during the playoffs with the Milwaukee Bucks. Despite his injury, Lillard chose the Trail Blazers over other contenders – including Boston, Golden State, and the Lakers – citing family reasons and a sentimental return to "Rip City".

This move reunites Lillard with a roster that now includes fellow veteran Jrue Holiday and emerging talents such as Scoot Henderson, Shaedon Sharpe, Robert Williams III, and Deni Avdija. Portland also holds multiple draft assets, including an unprotected 2029 first-round pick and two Bucks pick swaps, providing flexibility to support Lillard’s return. 

ANALYSIS:  This homecoming narrative is surreal for Lillard as he returns as the franchise’s all-time leading scorer (19,376 points) and seven-time All-NBA selection, reigniting hope for fans and restoring the city’s emotional bond. This strategic positioning also allows a player option and a no-trade clause to give Lillard autonomy while allowing Portland to recalibrate based on roster progress through 2026-27.

However, there will be some kind of development dilemma brewing even as Lillard offers veteran leadership. His return poses challenges for rising guards like Scoot Henderson, creating a balance between mentorship and developmental opportunities.

Portland’s decision to bring back Lillard signals a blend of heart and strategic intent. He’ll spend the upcoming season rehabbing and building chemistry, but when he returns, he’ll lead a young core and experienced vets in a storybook chapter dedicated to "Dame Time."