For some time, the New York Knicks have coveted point guard Jose Alvarado. On Thursday, just hours before the NBA trade deadline, the Knicks acquired Alvarado from the New Orleans Pelicans.
ESPN NBA insider Shams Charania had details about the trade in a post on X.
Knicks Acquire Jose Alvarado From Pelicans
“The Knicks are sending Dalen Terry, two second-round picks and cash to the Pelicans for Alvarado, sources said,” Charania posted on X.
The Knicks are sending Dalen Terry, two second-round picks and cash to the Pelicans for Alvarado, sources said. https://t.co/Dqb6As7uAI
— Shams Charania (@ShamsCharania) February 5, 2026
According to Spotrac, Alvarado signed a two-year, $9,000,000 contract with the New Orleans Pelicans in September 2024, including $9,000,000 guaranteed and an average annual salary of $4,500,000. During the 2025-26 NBA season, Alvarado is earning a base salary of $4,500,000, while carrying a cap hit of $4,500,000 and a dead cap value of $4,500,000.
The Knicks had just acquired Terry in a trade on Wednesday night, but have now flipped him as part of the Alvarado trade. Terry will now play for the Pelicans for the rest of this season.
In 41 games this season, Alvarado is averaging 7.9 points per game, 2.8 rebounds per game, 3.1 assists per game, and is shooting 41.8% from the floor. Alvarado also is shooting 36.3% from the 3-point range, and has an 83.3% free-throw shooting percentage, too.
With Alvarado coming to the Knicks, he’ll be able to spell guard Jalen Brunson when he needs rest on the bench. Alvarado has played all four-plus NBA seasons with the Pelicans, so he’s going from that team to the Knicks, who are stars in Madison Square Garden when they take the court.
In 268 career NBA games, Alvarado is averaging 8.1 points per game, 2.3 rebounds per game, and 3.1 assists per game. Career-wise, Alvarado shoots 41.2% from the floor. He gets an immediate upgrade from playing for the downtrodden Pelicans to a first-place team. Knicks head coach Mike Brown will find a place for Alvarado in his rotation, too.
As for Terry, he’s averaging 3.5 points per game this season, 1.9 rebounds per game, and 1.3 assists per game. Terry’s scoring average this season equals to his career scoring average as well.
The Knicks are currently tied for first place in the NBA’s Atlantic Division with the Boston Celtics with a 33-18 record. As for the Pelicans, they are dead last in the Southwest Division with a 13-40 record. So, Alvarado will now have a chance to play for a team that’s almost a lock for an NBA playoff spot.
