NEW YORK — The New Orleans Pelicans are trading Jose Alvarado to the New York Knicks, Shams Charania of ESPN reported on deadline day. The deal sends Alvarado home to New York. He was raised in Brooklyn and played high school basketball in Queens. His home in Brooklyn is less than 45 minutes away from MSG. The Knicks are sending Dalen Terry, two second-round picks, and cash to the Pelicans . They had just acquired Terry earlier Thursday in a Guerschon Yabusele salary dump with Chicago. The Knicks trade for one of the league’s most underrated reserve guards in Jose Alvarado. This trade was suggested by our Colleague Scott Anthony back in December so it’s an exciting addition for New York for sure.
Pelicans Trade New York Native Jose Alvarado To The Knicks
Why the Knicks Made the Move
The Knicks had limited options to upgrade the bench under first-apron trade restrictions. Terry for Alvarado works. Alvarado impacted winning consistently despite playing on a struggling New Orleans teams over the years.
They gain $1 million in apron space. They can now sign a 15th player. Chris Paul could become available, depending on how things unfold. The Knicks figure to stay active in the buyout market.
Cap analyst Yossi Gozlan highlighted New York’s options to retain Alvarado. “Jose Alvarado has a $4.5 million player option for next season. If he declines it, the Knicks can re-sign him using full Bird rights. If he picks it up, they could extend him starting September 30 for up to four years and roughly $68 million.”
Jose Alvarado has a $4.5 million player option for next season.
If he declines it, the Knicks can re-sign him with his full Bird rights.
If he picks it up, they could extend him starting on September 30 for up to four years and roughly $68 million. https://t.co/hY2j4EYKbc
— Yossi Gozlan (@YossiGozlan) February 5, 2026
Alvarado’s Impact
In 41 games this season, Alvarado has averaged eight points, three rebounds, three assists, and one steal in 22 minutes. Alvarado is a New York native. He became an undrafted success story with the Pelicans during the 2021–22 season.
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