The Los Angeles Lakers are already facing a salary-cap crunch, and it isn’t getting easier after the latest news involving Dorian Finney-Smith.
Finney-Smith reportedly had ankle surgery after the Lakers’ season ended to clean up his ankle, which cost him time and affected his ability during the 2025-26 season and their playoff-series loss to the Minnesota Timberwolves.
Although Finney-Smith is expected to return in time for training camp, he also can opt out of his $15.4 million option before June 29. He also will be extension eligible and can sign either a three- or four-year contract with the Lakers, according to ESPN.
What Happened To Dorian Finney-Smith?
The Lakers acquired Finney-Smith from the Brooklyn Nets for D’Angelo Russell and multiple second-round picks in December. Finney-Smith had missed time with the Nets due to his ankle issue, then missed eight games with the Lakers after the trade due to “ankle management.”
According to ESPN, Finney-Smith had been dealing with his ankle issue for years, and it also led to pain in his left calf. The team expects Finney-Smith to be pain free after his procedure.
The wing, who turned 32 on May 4, started 20 games with the Lakers, and they went 14-6 in those games in the regular season and were 29-14 in his 43 games in LA a season ago.
What Is Dorian Finney-Smith’s Contract Situation?
Now, the big question centers around where Finney-Smith will play next season and if the Lakers can afford to bring him back.
Though Finney-Smith only averaged 7.9 points and 3.6 rebounds per game with the Lakers, he shot 39.8 percent from 3-point range and was a valuable defender. He also reportedly was valuable in the Lakers locker room, especially after LA acquired his ex-Dallas Mavericks teammate Luka Doncic on Feb. 2.
Finney-Smith is likely to be a valued commodity, since he has been traded twice in the past three seasons — first from Dallas to Brooklyn in March 2023 then from Brooklyn to Los Angeles on Dec. 29.
But Finney-Smith is also due a raise, from his $15.4 million salary to potentially a $22.55 million annual salary if the Lakers offer him a four-year extension, according to ESPN’s Bobby Marks. Even a three-year deal, which seems like a more plausible option for a ninth-year pro, he can collect $54 million, which would be an $18 million cap charge.
The Lakers’ cap situation makes any potential cap increases, especially for a role player like Finney-Smith, hurt even more. They are just $16 million shy of the extremely restrictive second apron, and LeBron James has a player option for 2025-26, which means he could opt out and earn a raise of up to $56 million over the next two years.
Obviously, signing James is priority No. 1 for the Lakers, since, even at 40, he is still the most marketable and consistent player on the team. But if they re-up James and Finney-Smith, that would take them above the first apron and force some trade restrictions.
James has been linked to rivals like the Golden State Warriors, and he also has been rumored to return to Cleveland — though those close to James are reportedly unsure what he will do. Like Finney-Smith, James has until June 29 to decide to opt out or not.
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