Jose Alvarado returning to Knicks on $14 million contract after declining player option

One of the first dominoes of the Knicks’ offseason now has clarity.  Jose Alvarado declined his $4.5 million player option for next season, but he’s returning on a three-year deal worth over $14 million, according to ESPN.The decision allowed him to, instead of playing on the one-year option, sign a multiyear deal that carries a lower average annual value than that $4.5 million.That is crucial because the Knicks are operating in accordance with owner James Dolan’s wishes to stay below the second apron and have a tight budget in order to do so. Alvarado’s deadline for the decision was originally on Monday, but he and the Knicks agreed to push it back to Friday, after the NBA draft. He emerged as a key bench piece for the Knicks’ championship run, providing the Knicks with a true backup point guard that they lacked before his arrival.He also added a bit of snarl and feistiness to a team that, at the time, needed it. They acquired him — after a series of moves that started with sending away Guerschon Yabusele — just ahead of the deadline.  Sign up for Inside the Knicks by Stefan Bondy, a weekly exclusive on Sports+.

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Enjoy this Post Sports+ exclusive newsletter! President Leon Rose recently praised Alvarado as one of his best under-the-radar moves in building the Knicks into champions. “That was huge,” Rose said on the “Roommates Show” podcast, “because we did need another ball handler, we needed another person that could put it on the floor and take some of the pressure off.” This premium commemorative plaque features the iconic front cover of the New York Post from the Knicks’ historic 2026 NBA Finals victory.The walls of any true fan require this plaque of our back cover from June 14, 2026 featuring Brunson and the boys celebrating their win.

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