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In a move designed to clear salary and a roster spot, the Rockets agreed to trade Dorian Finney-Smith and three future second-round draft picks to the Charlotte Hornets.
ESPN’s Shams Charania was the first to report. As part of the deal, Houston generated a $13.3-million trade exception (the amount of Finney-Smith’s salary) that will last for one year.
Per ESPN’s Bobby Marks, the second-round selections headed to Charlotte include Houston’s own picks in 2028 and 2033 and one from the Memphis Grizzlies in 2027.
After undergoing ankle surgery in the 2025 offseason, Finney-Smith struggled mightily in his one season in Houston, and that forced the Rockets to pay a premium (second-round picks) to offload his deal.
Now 33 years old, it remains to be seen if Finney-Smith can ever recapture his previous form. Only his 2026-27 salary is guaranteed, though there are two additional non-guaranteed years on his current contract.
After paying the luxury tax last season, shedding Finney-Smith’s salary potentially allows Houston to dip below the NBA’s tax line in 2026-27. That could delay the onset of punitive “repeater tax” penalties for the Rockets.
But Houston will retain the financial flexibility to add further payroll and go back into the tax, if circumstances (such as injuries) warrant.
Moving Finney-Smith also opens up a roster spot, which could be used to get younger. Isaiah Crawford, a 24-year-old forward, could be in line for a larger role after showing promise as a two-way player last season.
Another option is defensive minded guard Josh Okogie, an unrestricted free agent who played relatively well in his opportunities with the 2025-26 Rockets. Houston does have interest in an Okogie reunion, a team source told Rockets Wire, but he could have greater financial offers elsewhere.
Further down the bench, the “elder statesman” role that had belonged to 39-year-old forward Jeff Green could go to 30-year-old forward Jae’Sean Tate. Both are currently free agents.
Finally, the third-string guard role that previously belonged to Aaron Holiday now appears earmarked for Bruce Thornton, a rookie guard from Ohio State (who Houston drafted high in the second round).
More: Rockets opt to stay in luxury tax at 2026 NBA trade deadline
This article originally appeared on Rockets Wire: Rockets trade Dorian Finney-Smith, second-round draft picks to Charlotte
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ESPN’s Shams Charania was the first to report. As part of the deal, Houston generated a $13.3-million trade exception (the amount of Finney-Smith’s salary) that will last for one year.
Per ESPN’s Bobby Marks, the second-round selections headed to Charlotte include Houston’s own picks in 2028 and 2033 and one from the Memphis Grizzlies in 2027.
After undergoing ankle surgery in the 2025 offseason, Finney-Smith struggled mightily in his one season in Houston, and that forced the Rockets to pay a premium (second-round picks) to offload his deal.
Now 33 years old, it remains to be seen if Finney-Smith can ever recapture his previous form. Only his 2026-27 salary is guaranteed, though there are two additional non-guaranteed years on his current contract.
The Rockets save over $20 million against their payroll and tax and get under the first apron by salary dumping Dorian Finney-Smith.
They create a $13.3 million trade exception and are in a position to field the rest of the roster while staying under the luxury tax line https://t.co/gc1mW4eTPq
— Yossi Gozlan (@YossiGozlan) July 3, 2026
After paying the luxury tax last season, shedding Finney-Smith’s salary potentially allows Houston to dip below the NBA’s tax line in 2026-27. That could delay the onset of punitive “repeater tax” penalties for the Rockets.
But Houston will retain the financial flexibility to add further payroll and go back into the tax, if circumstances (such as injuries) warrant.
Moving Finney-Smith also opens up a roster spot, which could be used to get younger. Isaiah Crawford, a 24-year-old forward, could be in line for a larger role after showing promise as a two-way player last season.
Per the legendary @johnhollinger:
"The Rockets now stand $14.9 million below the first apron, so another potential use of their new financial breathing room would be to use the rest of their nontaxpayer midlevel exception; they have nearly $9 million left after using $6.1…
— Will Guillory (@WillGuillory) July 3, 2026
Another option is defensive minded guard Josh Okogie, an unrestricted free agent who played relatively well in his opportunities with the 2025-26 Rockets. Houston does have interest in an Okogie reunion, a team source told Rockets Wire, but he could have greater financial offers elsewhere.
Further down the bench, the “elder statesman” role that had belonged to 39-year-old forward Jeff Green could go to 30-year-old forward Jae’Sean Tate. Both are currently free agents.
Finally, the third-string guard role that previously belonged to Aaron Holiday now appears earmarked for Bruce Thornton, a rookie guard from Ohio State (who Houston drafted high in the second round).
More: Rockets opt to stay in luxury tax at 2026 NBA trade deadline
Seconds going back to Charlotte
2027 Memphis
2028 Houston
2033 Houston
Finney-Smith has 3 years left on his contract but only this season is guaranteed
2026/27: $13.33M
2027/28: $13.33M ($0 GTY)
2028/29: $13.33M ($0 GTY)
He has a 3.2% trade bonus= $861,974 https://t.co/WV0fgY9V55
— Bobby Marks (@BobbyMarks42) July 3, 2026
The Rockets also now open up access to the $15 million non-taxpayer mid-level exception.
They’ll have around $9 million remaining from it after signing Marcus Smart.
They could use some but maybe not all of it under first apron depending on how they structure Tari Eason’s deal. https://t.co/0v48AYpT6M
— Yossi Gozlan (@YossiGozlan) July 3, 2026
This article originally appeared on Rockets Wire: Rockets trade Dorian Finney-Smith, second-round draft picks to Charlotte
Continue reading...