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The Houston Rockets are exploring ways to create financial flexibility to sign veteran guard Marcus Smart, with the team reportedly engaging in trade discussions involving Dorian Finney-Smith to open room for a larger multiyear contract.

Marc Stein and Jake Fischer of The Stein Line reported on Tuesday that Houston has contacted several teams about moving Finney-Smith, hoping to clear space for an offer to Smart expected to average around $7 million annually. If the Rockets cannot move Finney-Smith, they could still sign Smart to a two-year deal worth approximately $13 million.

Smart has to declined his $5.39 million player option with the Los Angeles Lakers and entered unrestricted free agency. After a difficult stretch caused by injuries over the previous two seasons, the former Defensive Player of the Year rebuilt his market value with the Lakers, starting 54 of 62 games during the 2025-26 regular season.

The 32-year-old averaged 9.3 points, 3.0 assists, 2.8 rebounds and 1.4 steals in 28.5 minutes per game while shooting 39.5% from the field and 33.1% from three-point range. His offensive production was limited, but his perimeter defense remained a major part of Los Angeles’ success alongside Luka Doncic, Austin Reaves and LeBron James.

Smart’s impact increased in the playoffs. He started all 10 postseason games for the Lakers and averaged 12.9 points, 5.1 assists, 3.5 rebounds and 2.4 steals, taking on a bigger role when injuries affected the team’s rotation.

A potential move to Houston would reunite Smart with Rockets head coach Ime Udoka, who coached him during his nine seasons with the Boston Celtics. Smart played a key role on Boston teams that consistently ranked among the league’s best defensive units before being traded to the Memphis Grizzlies in 2023.

The Rockets finished the 2025-26 season with a 52-30 record, earning the No. 5 seed in the Western Conference. They featured a balanced core led by Kevin Durant, Alperen Sengun and Amen Thompson, but their first-round loss to the Lakers exposed the need for more playoff experience and defensive versatility.