Blazers officially won the Damian Lillard trade after his return

Dame is back!!
Dec 8, 2022; Portland, Oregon, USA; Portland Trail Blazers guard Damian Lillard (0) celebrates during the second half after scoring a three point basket against the Denver Nuggets at Moda Center. The Nuggets won the game 121-120. Mandatory Credit: Troy Wayrynen-Imagn Images
Dec 8, 2022; Portland, Oregon, USA; Portland Trail Blazers guard Damian Lillard (0) celebrates during the second half after scoring a three point basket against the Denver Nuggets at Moda Center. The Nuggets won the game 121-120. Mandatory Credit: Troy Wayrynen-Imagn Images | Troy Wayrynen-Imagn Images

Damian Lillard is officially back with the Portland Trail Blazers as ESPN's Shams Charania reports he's finalizing a three-year, $42 million contract to return to Rip City. The deal is reportedly expected to include a player option in 2027-28 and a no-trade clause. Although Lillard could (and should) sit out the entirety of the 2025-26 season as he recovers from an Achilles tear, it's perfect timing for Lillard and the Blazers.

Dame now gets to rehabilitate closer to his family and kids, which Charania notes was a top deciding factor in his landing spot. Additionally, he finally gets the opportunity to play on a potential contender in Portland. In Lillard's absence, the Blazers finally assembled a gritty, defensive-minded team that is long and athletic -- a perfect complement to his strengths and weaknesses.

And that's largely thanks to the assets that the Blazers got back from trading Lillard in the first place.

Damian Lillard reunites with Blazers armed with assets from his departure

Here was the initial blockbuster three-team deal:

Bucks receive: Damian Lillard

Trail Blazers receive: Jrue Holiday, Deandre Ayton, Toumani Camara, Milwaukee's 2029 unprotected first-round draft pick and unprotected Milwaukee swap rights in 2028 and 2030

Suns receive: Jusuf Nurkic, Grayson Allen, Nassir Little and Keon Johnson

There were several moving parts following this deal as well. Portland flipped Holiday to Boston, landing Robert Williams III, Malcolm Brogdon, and draft capital (part of which led them to stealing Deni Avdija from the Wizards). With the recent one-for-one swap of Anfernee Simons for Holiday with the Celtics, this trade has essentially come full circle in a very unexpected way.

Because of the Dame trade, the Blazers landed their two most pivotal building blocks -- and arguably their two best players -- in Avdija and Camara. That completely altered their team identity for the better.

Unfortunately, Blazers fans have seen time and time again that the initial formula they had with Lillard and his surrounding pieces didn't work, consistently coming up short in the playoffs despite regular-season success. Now, they are seemingly much better equipped for a deep playoff run (when their young core is developed enough to get to that point).

At 35 years old and coming off a brutal injury, it's unlikely Lillard returns as the same player in 2026-27. But now, thanks to the trade, they don't need him to be elite. Portland was able to get assets while bringing him back, setting them up for playoff success as soon as next season.