NBA Cap Dump
Houston Rockets Trade Dorian Finney-Smith to Hornets, Open Cap Space for Future Moves
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Key Points
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Charlotte now holds 20 second-round picks over the next seven years, the second-most in the NBA, giving the Hornets a substantial and highly liquid asset base for future trades and roster moves.
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The deal creates a $13.36 million trade exception for Houston and helps the Rockets avoid the second apron by moving out Finney-Smith’s contract, potentially leaving them with about 12 players under contract and flexibility to maneuver before free agency.
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Finney-Smith’s 2025-26 season in Houston was hampered by an ankle surgery and a late return to form, as he averaged 3.3 points over 16.8 minutes in 37 games with shooting splits around 33.3% from the field and 27% from three.
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Charlotte’s acquisition of Finney-Smith comes as the franchise continues its roster reshaping after a blockbuster trade that sent LaMelo Ball to Minnesota, with Finney-Smith adding veteran perimeter defense and playoff experience to the mix.
The Houston Rockets have traded forward Dorian Finney-Smith and three second-round picks to the Charlotte Hornets, according to NBA.com and Houston Chronicle. The move is a straightforward cap dump — Houston pays to move a disappointing contract, and Charlotte collects assets.
Finney-Smith signed a four-year, $53 million deal with Houston less than a year ago. His 2025-26 season was a bust, and the Rockets are now paying three second-round picks to get out from under his contract, per Houston Chronicle.
Finney-Smith's Brutal Season Made Him Expendable
Finney-Smith's first year in Houston was derailed by ankle surgery. He averaged just 3.3 points in 16.8 minutes per game across 37 games. His shooting splits were ugly — 33.3% from the field and 27% from three-point range, per Houston Chronicle.
He did show late-season improvement, but it was too little. The Rockets decided moving him — even at a steep cost of three future picks — was worth clearing his salary from the books ahead of the 2026-27 season.
Houston Frees Cap Space and Dodges the Luxury Tax Penalty
The trade does real financial work for the Rockets. It creates a $13.36 million trade exception and helps Houston stay below the NBA's "second apron" — a hard spending threshold that limits a team's ability to make moves, according to NBA.com.
With Finney-Smith off the books, Houston will have roughly 12 players under contract. That gives the front office room to maneuver before free agency opens. The Rockets are trying to build around Marcus Smart, Bogdan Bogdanovic, and Tari Eason without blowing past the tax line.
Charlotte Piles Up Draft Picks After LaMelo Ball Departure
The Hornets now hold 20 second-round picks over the next seven years — second-most in the entire NBA, per 640 WXSM and The Ticket. Charlotte has been on a full asset-collection tear since trading star guard LaMelo Ball to the Minnesota Timberwolves.
Finney-Smith adds something different to Charlotte's rebuild: veteran defense. He has playoff experience and can guard multiple positions on the perimeter. For a young team still figuring out its identity, that kind of depth has real value — even if he comes with a hefty price tag.
A Calculated Swap That Sets Both Teams Up for 2026-27
This deal is less about winning now and more about positioning. Houston trades away three second-round picks — relatively low-value assets — to clean up a contract mistake and protect its flexibility. Charlotte absorbs the salary but gains both a veteran wing and more draft chips to shop in future trades.
Analysts see this as a recalibration for both franchises. Houston's core remains intact and its cap sheet gets cleaner. Charlotte keeps stacking assets, betting it can eventually convert that depth into something bigger — whether through trades or roster-building around its next young star.
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