Jose Alvarado in Completely New Place With Knicks Post-Finals

Jun 10, 2026; New York, New York, USA; New York Knicks guard Jose Alvarado (5) reacts in the fourth quarter against the San Antonio Spurs during game four of the 2026 NBA Finals at Madison Square Garden. Mandatory Credit: Brad Penner-Imagn Images | Brad Penner-Imagn Images

With the New York Knicks four days removed from winning the NBA Finals, the team will get to work on its offseason checklist. The goal for next season is to repeat as NBA champions, and that will come with its own set of challenges.

Among the list of offseason items for the Knicks is figuring out Jose Alvarado’s future with the club. The New York native went from not being part of Mike Brown’s rotation to end the regular season to playing critical minutes in the 2026 NBA Finals. In fact, one could make the case that the Knicks wouldn't have won the title without his moments in Games 1 and 4.

Now, the team may view him in an entirely new light. He's gone from just a bench piece to an essential reserve that can help win a championship, which makes his new leverage after an impressive Finals and contract situation that much concerning for New Yrok.

Knicks suddenly need Jose Alvarado more than ever before

The 28-year-old guard has a $4.5 million player option for the 2026-27 season to stay in New York. If he decides to opt in, Alvarado gives the Knicks another ballhandler who can take some pressure off Brunson, but also someone who can play alongside the Finals MVP.

Now, could Alvarado deciding to opt in come at a cost? It could, given that the second apron is looming in the background. The Knicks have to figure out what to do with Mitchell Robinson and Landry Shamet, both of whom played integral roles off the bench, and they would like to retain them.

But there’s always a chance that another team with much more cap space could throw a big number at Robinson or Shamet based on their performances in the playoffs. Coincidentally, the same thing could happen to Alvarado, especially if he opts out.

If there’s another contender or a team with space that needs a scrappy backup point guard, Alvarado’s AAV could easily go north of $6M, which would put the Knicks in a tough spot as they rub up against the second apron.

Alvarado wouldn’t be in the wrong to entertain a better deal because again he had moments in the NBA Finals that New York wasn’t getting from Shamet, who cooled off, and Miles McBride, who fell off the face of the earth.

The veteran point guard’s overall playoff numbers won’t wow you (4.2 points per game in 9.2 minutes per game). However, he shot 35.3% from deep on 1.9 attempts per game — it's an improvement from the regular season with the Knicks (33% on 3.4 attempts).

But not only that, Alvarado’s defense in the postseason was outstanding, as he had a 103 DRtg (defensive rating). That said, if you’re the Knicks, you want to keep that around for next season, especially if Shamet doesn’t come back and with McBride's future far from guaranteed.

Nonetheless, it's been a wild last few weeks for Knicks fans and for Alvarado. If you told them back in February, when the team acquired Alvarado from the Pelicans, that he would be making critical plays in the NBA Finals, they likely wouldn’t believe you.

However, he did, and credit to him for always staying ready, despite not seeing consistent playing time in the first three rounds of the playoffs.