NBA Trade Deadline: Jose Alvarado to Wear Knicks Jersey
Trade — Jose Alvarado heads home as the New Orleans Pelicans send him to the New York Knicks for Dalen Terry and two draft picks, opting against Guerschon Yabusele to match Alvarado’s $4.5 million salary.
Jan 31, 2026; Philadelphia, Pennsylvania, USA; New Orleans Pelicans guard Jose Alvarado (15) reacts to his three pointer against the Philadelphia 76ers during the fourth quarter at Xfinity Mobile Arena. Mandatory Credit: Bill Streicher-Imagn Images
Photo Credit : © Bill Streicher-Imagn Images
The New York Knicks have just made an interesting move by acquiring Jose Alvarado, the point guard from the New Orleans Pelicans. A New York native, the 27-year-old player is returning home in a trade that could revitalize the Knicks’ backcourt.
A Three-Team Trade Orchestrated by the Knicks
According to information reported by Shams Charania of ESPN, the Pelicans will receive Dalen Terry along with two second-round picks (2026 and 2027) and cash in exchange for Alvarado. This transaction also involves the Chicago Bulls, as the Knicks first acquired Terry from Chicago before including him in the trade with New Orleans.
The New Orleans Pelicans showed no interest in Guerschon Yabusele, whose $5.5 million contract includes a player option for the 2026–27 season. The New York Knicks therefore pivoted to this alternative structure to match Jose Alvarado’s $4.5 million salary for the current campaign.
Just in: The New Orleans Pelicans are trading Jose Alvarado to the New York Knicks, sources tell ESPN. Homecoming for the Pelicans guard. pic.twitter.com/OEG3GVFX05
— Shams Charania (@ShamsCharania) February 5, 2026
A Defensive Addition at the Right Time
Alvarado arrives at the perfect time for the Knicks, who just learned that Miles McBride will need to undergo surgery on his abdominal muscles. This injury could keep him off the court until the playoffs, creating an urgent need for depth at the point guard position.
This season, Jose Alvarado is averaging 7.9 points, 3.1 assists and 2.8 rebounds in 21.9 minutes across 41 appearances, while shooting 41.8% from the field, 36.3% from beyond the arc and 83.3% at the free-throw line. Renowned for his on-ball defense and high-energy impact off the bench, he is expected to carve out a role quickly in the New York Knicks rotation.
Jose Alvarado’s contract includes a $4.5 million player option for next season. Should he decline it, the New York Knicks would still hold his Bird rights, though the organization would likely prefer him to opt in before negotiating an extension, a path that would help manage the cap for the 2026–27 season.
The deal also leaves New York with enough flexibility below the second apron to add a 15th player on a minimum contract, rather than having to wait until the end of the season to fill the final roster spot.
Stats 2025-2026 / NBA
PTS
7.9
#240
REB
2.8
#278
AST
3.1
#115
With a background in sports management, Nicolas Flamecourt covers NBA news with a particular passion for the North American league, which he has been following for several years. He also covers the NCAA, including news and scouting of future prospects, and regularly conducts interviews with French players as well as players competing in Europe.
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