Per Spotrac, the Rockets were $50.6 million over the cap before the addition of Finney-Smith, but ESPN's Bobby Marks noted that Finney-Smith's contract comes out of the $14.1 million non-taxpayer mid-level exception.

Free agent forward Dorian Finney-Smith has agreed to a four-year, $53 million deal with the Houston Rockets, sources tell ESPN. Finney-Smith's agent, Michael Tellem of Excel Sports, negotiated terms of the deal tonight with Rockets executives for the 3-and-D wing. pic.twitter.com/wUNbGn0rOy

At 6ft-7in Finney-Smith is a very versatile defender who will allow the Rockets to switch in their pick-and-roll defense, since he is able to guard all five positions. Rumors of mutual interest between Finney-Smith and the Rockets began to swirl immediately following his declining of his player option to stay with the Lakers.