Pelicans Trade Jose Alvarado to the Knicks in 1st Move Before Deadline

The New Orleans Pelicans part ways with a fan favorite in their first trade of the season.

Matthew Hinton-Imagn Images

The New Orleans Pelicans have been signaling their lack of interest in being sellers at the trade deadline. Despite having the second-worst record in the league, the Pelicans believe in their core group and want to hold onto Trey Murphy, Herb Jones, and Zion Williamson at least until the end of the season. That doesn't mean, however, that everyone on the roster is safe with only a few hours left before the deadline.

In fact, the Pelicans made their first big move of the trade season. ESPN's Shams Charania reported that New Orleans is sending Jose Alvarado to the Knicks, in exchange for two second-round picks and Dalen Terry.

Pelicans Send Jose Alvarado to Knicks 2 Hours Before Trade Deadline

This is a homecoming for Alvarado, who was born in Brooklyn. Over the last four and a half years in New Orleans, Alvarado has become a fan favorite with his intensity and gritty play. Picking up players full court, getting sneaky steals that earned him the "Grand Theft Alvarado" nickname, and being an excellent locker room presence in general, the 27-year-old guard will surely be missed in New Orleans.

The Pelicans, with no second-round picks until the 2030 NBA Draft, however, had no choice but to make some moves to add some draft capital. Alvarado has a player option for $4.5 million for next season, so he could become a free agent in the summer. Instead of risking losing him for nothing in the offseason, the Pelicans replenish their asset coffers.

While the most important return for the Pelicans is the second-round picks, they also add Dalen Terry, who was traded to the Knicks in exchange for Guerschon Yabusele earlier in the day.

Terry spent four years with the Bulls after being selected 18th-overall in the 2022 NBA Draft. He hasn't been able to establish himself a rotation player so far, but he is only 23 years old. His contract expires in the summer, and the Pelicans will have two months to evaluate him before they make a decision about whether they want to re-sign him.

Alvarado, on the other hand, will have a chance to compete for a championship with the Knicks. He should immediately have a role off the bench as the Knicks lack depth. He will likely compete with Tyler Kolek and Jordan Clarkson for backup combo guard minutes. How much he will play remains to be seen, but it's safe to assume he will quickly endear himself to the Madison Square Garden crowd by always giving 110% on the court.