Trail Blazers' Updated Roster, Salary Cap Space After Damian Lillard's $42M Contract
Damian Lillard is returning to Rip City.
The 35-year-old veteran is finalizing a three-year, $42 million deal with the Portland Trail Blazers, according to ESPN’s Shams Charania. The contract is expected to include a player option for the 2027-28 season and a no-trade clause.
Before news broke of Lillard’s return to the team that drafted him in 2012, Portland was $32.4 million over the cap.
Re-signing the nine-time All-Star—who was waived by the Milwaukee Bucks earlier this month—allows the Blazers to retain their young core without giving up any key pieces.
Here's a look at how the Blazers could look once Lillard is fully recovered from his Achilles injury.
PG: Damian Lillard, Scoot Henderson, Caleb Love
SG: Jrue Holiday, Shaedon Sharpe, Rayan Rupert
SF: Toumani Camara, Deni Avdija, Matisse Thybulle
PF: Jerami Grant, Kris Murray
C: Donovan Clingan, Robert Williams III, Hansen Yang, Duop Reath
Lillard left the Blazers in 2023 via trade, but the Bucks saw limited success during his stint. In his absence, Portland went 21-61 and 36-46 under head coach Chauncey Billups.
After the Bucks waived Lillard earlier in July, they stretched the remaining $113 million on his contract to create room to sign Indiana free agent Myles Turner — a move that drew heavy criticism, given Lillard's Achilles tear during the 2025 NBA Playoffs.
Between the Trail Blazers and the Bucks, Lillard is set to earn $70 million in combined salary this season and $141 million over the next two years, before his player option in 2027, according to Charania.
There is no timetable for Lillard’s return from his Achilles injury, and he is expected to spend the entire 2025-26 season rehabbing in Portland. According to Charania, the decision to return was driven largely by family, with Lillard prioritizing being close to his children. He reportedly received only mid-level exception and minimal offers from contenders before choosing to return to the Trail Blazers.
With Portland, Lillard has made seven All-Star appearances and led the team to eight playoff berths. He ranks first in franchise history in points (19,376) and 3-pointers made (2,387).
