LOS ANGELES – The Los Angeles Lakers are in a mini crisis after Houston manhandled them on Christmas Day. The mood in Lakerland contrasts sharply with earlier weeks. They were winning and carrying momentum then. They cannot stop losing right now. The Lakers are also set to relinquish key trade exceptions in the coming days.
Lakers Set To Lose Trade Assets Amid Losing Skid
Slipping in a Crowded West
Los Angeles sits fourth in the Western Conference with a 19–10 record. Just weeks ago, they stood at 15–4. They were positioning themselves for a top seed. Now they sit only a few games ahead of surging Minnesota and Houston. Momentum disappears quickly in a top-heavy West.
An Offense That Still Works But Defensive Collapse Raises Alarms
The Lakers own the league’s seventh-best offense. Injuries have forced players in and out of the rotation. When healthy, they can field a top-three offense. That potential remains intact despite recent struggles.
The defense tells a different story. The Lakers owned a middling defense for most of the season. Over the last two weeks, it has cratered. They now rank among the bottom five defenses. This decline has caused major headaches for JJ Redick and his staff. They have leaned on effort and focus. That approach has hit a wall.
Trade Limitations Close In
The Lakers face roster limitations that effort alone cannot solve. GM Rob Pelinka will need to act. He will do so with fewer tools. The Lakers currently hold three trade exceptions. Two will expire before year’s end.
One exception carries just $187,000 from the Luka Dončić trade. The other two stem from last season’s deal with Brooklyn. Los Angeles acquired Dorian Finney-Smith for Maxwell Lewis and D’Angelo Russell. Those exceptions are worth $1.8 million and $800,000. The Lakers cannot use both. They sit hard-capped at the first apron after using the non-taxpayer mid-level exception. Trade rules restrict their flexibility. Both exceptions will expire on Dec. 29th, 2025.
These exceptions matter. They help teams absorb larger contracts in trades. The Lakers will lose them as they search for roster upgrades. That loss narrows Pelinka’s options at a critical time.