Pelicans Trading Jose Alvarado To Knicks

According to Ian Begley of SNY.tv (Twitter link), New York will send a pair of second-round picks along with Dalen Terry to New Orleans in exchange for Alvarado. The Pelicans will also receive cash, per Charania (Twitter link). The two second-rounders headed to New Orleans are 2026 and 2027 selections, adds James L. Edwards of The Athletic (Twitter link).

Alvarado had been connected to the Knicks in rumors for much of the season leading up to the trade deadline. New York was in the market for backcourt help and the 27-year-old was viewed as a logical fit due in part to his affordable $4.5MM cap hit, which the Knicks could accommodate by sending out Guerschon Yabusele ($5.5MM).

The Pelicans reportedly weren’t interested in taking back Yabusele, whose contract includes a 2026/27 player option, so the Knicks found another taker, making a deal with Chicago for Terry, and will flip the newly acquired forward to New Orleans in this deal — it’s also possible the two moves will be officially completed as a single transaction.

Considered a tenacious defender who brings energy off the bench, Alvarado has averaged 7.9 points, 3.1 assists, and 2.8 rebounds in 21.9 minutes per game across 41 appearances for the Pelicans this season. His shooting line is .418/.363/.833.

Alvarado’s contract features a $4.5MM player option for next season. If he opts out of his deal, the Knicks would have the ability to re-sign him using his Bird rights, but they may prefer for him to opt in and negotiate an extension that begins the following season, since it would help keep the team’s payroll in check for 2026/27.

The Knicks’ need for backcourt depth was heightened on Thursday as the team got word that Miles McBride will require core muscle surgery that could sideline him until the postseason, so Alvarado is well positioned to take on a significant role upon joining his new team.

As for the Pelicans, while they were widely viewed as one of the biggest potential sellers at this year’s deadline, they’ve been quiet to this point, having reportedly told teams they wouldn’t be moving prime trade chips like Zion Williamson, Trey Murphy III, and Herbert Jones. While potential suitors believed that stance might change if the offers were strong enough, New Orleans hasn’t been convinced to move anyone besides Alvarado so far.