Lakers Offseason Cap Space Situation Explained

After acquiring five-time All-NBA First Team guard Luka Doncic and posting a 50-32 regular season record in 2024-25, the Los Angeles Lakers opened up their first round of the Western Conference playoffs with the No. 3 seed and a seemingly bright future.

But the Lakers' new All-Star tandem of Doncic and a very old LeBron James didn't last particularly long, without much reliable depth beyond guard Austin Reaves and forwards Rui Hachimura and Dorian Finney-Smith.

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Los Angeles fell to the No. 6-seeded Minnesota Timberwolves in five games. The team's obvious lack of reliable rim protection and JJ Redick's refusal to play his traditional centers any more than token minutes really hurt against a talented Timberwolves frontcourt.

The Lakers' perimeter defense was also exposed against athletic Minnesota wings like Anthony Edwards and Jaden McDaniels.

So how can the Lakers improve this summer?

In a new piece, Bobby Marks of ESPN takes a look at L.A.'s cap space situation heading into the summer.

"James has a $52.6 million player option for next season," Marks writes. "He and Finney-Smith have until June 29 to opt in for next season."

Finney-Smith has a $15.4 million player option of his own for 2025-26.

Among rotation pieces, only center Jaxson Hayes will hit free agency. He fell out of favor with Redick during the Timberwolves series, and feels like a long shot to come back on anything more than a veteran's minimum.

Los Angeles may need to make some trades if it wants to add meaningful new pieces during the offseason, as James opting in or signing a new maximum deal would put the club in the league's punitive luxury tax.

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Still, as Marks explains, the Lakers would be able to combine contracts in trades even with a James opt-in or a similar new deal.

"If James opts in or signs a new contract with a comparable starting salary, the Lakers will be $1.3 million over the luxury tax," Marks writes. "They are $6.7 million below the first apron and will only have access to their $5.7 million non-tax mid-level exception. Because the Lakers are well below the second apron, they have flexibility to aggregate contracts in a trade."

Last year, James averaged 24.4 points on .513/.376/.782 shooting splits, 8.2 assists, and 7.8 rebounds across 70 healthy games, and seems in line to earn his 21st consecutive All-NBA appearance. But in the playoffs, his vulnerabilities looked more glaring. The four-time league MVP looked gassed at the ends of games, with Redick running him ragged. He can summon up that old two-way magic, but not for an entire playoff series.

Los Angeles needs help beyond James and Doncic. It may cost them a Reaves or Hachimura contract.

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Anthony Edwards, Timberwolves Waste No Time Taking Shots At Lakers

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