The New York Knicks are acquiring guard Jose Alvarado from the New Orleans Pelicans, marking a homecoming for the 27-year-old, league sources told The Athletic.
The Knicks are re-routing Dalen Terry to New Orleans in the deal and sending two second-round picks for Alvarado. The second-round picks being sent to New Orleans are in 2026 and 2027. The 2026 second-rounder will be the lesser of New York’s or Minnesota’s.
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Getting another backup ballhandler like Alvarado was a priority because Miles “Deuce” McBride will undergo surgery for a core muscle injury and could be out until the playoffs, league sources said.
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McBride, 25, has missed the last few games with “left ankle injury management.” The Knicks were already on the prowl for an extra ballhandler, but McBride’s injury pushed the process along even further.
New York sheds even more payroll with the deal. Terry makes $5.4 million, and Alvarado is at $4.5 million, allowing the Knicks to get into the buyout market sooner.
Here’s Jose Alvarado talking about his first game at Madison Square Garden during his rookie season.
The Brooklyn kid returns to his roots. pic.twitter.com/JCVIq1eLbw
— Will Guillory (@WillGuillory) February 5, 2026
Alvarado is known for his pesky on-ball defense and feisty demeanor, which has made him a fan favorite in New Orleans since he arrived as an undrafted free agent ahead of the 2021-22 season.
Since then, he’s turned into a reliable backup point guard in his five seasons with the Pelicans, as his overall offensive game has gradually improved. This season, he’s averaging 7.9 points and 3.1 assists while shooting 41.8 percent from the field and 36.3 percent on 3s.
Alvarado signed a two-year, $9 million extension with the Pelicans in September 2024.