Pelicans Trade Jose Alvarado to Knicks

Emerson Raymont

Published: February 5, 2026 6:46 PM ET

Jose Alvarado is making a highly anticipated move back to his home state as he joins the New York Knicks from the New Orleans Pelicans. This trade was reported by Shams Charania of ESPN and confirmed through various sources.

Details of the Trade

The Knicks have agreed to send two second-round draft picks along with Dalen Terry to the Pelicans in exchange for Alvarado. The traded picks are from the 2026 and 2027 NBA drafts. In addition, the Pelicans will receive cash as part of the deal.

Player Background

Jose Alvarado, a New York native, has been with the Pelicans for five seasons. He has become known for his defensive skills and high energy off the bench. This season, Alvarado has averaged 7.9 points, 3.1 assists, and 2.8 rebounds over 41 game appearances. His shooting statistics are impressive, boasting a field goal percentage of .418, a three-point percentage of .363, and a free throw percentage of .833.

Salary Cap Implications

Alvarado’s contract includes a $4.5 million player option for the upcoming season. If he decides to opt out, the Knicks could re-sign him using his Bird rights. However, they may prefer that he opts in and negotiate an extension for the 2026-2027 season to better manage their payroll.

Impact on the Knicks

The Knicks are in need of improved backcourt depth, especially following news that Miles McBride will undergo core muscle surgery. This could keep McBride out until the postseason, making Alvarado’s addition even more critical for New York.

Alvarado’s role likely to increase significantly upon joining the Knicks.
With this trade, the Knicks found room under the salary cap to add another minimum-salary player.

Pelicans’ Strategy

Despite speculation, the Pelicans remain reluctant to trade key players like Zion Williamson, Trey Murphy III, and Herbert Jones. They had been considered potential sellers at the deadline but decided to keep most of their core intact, with Alvarado being the only player traded.

This trade not only signifies a homecoming for Alvarado but also reflects the Knicks’ strategy to bolster their roster ahead of the playoff push. As the season continues, both teams will be closely watched for any further moves they might make.