It hasn’t even been two full weeks since the New York Knicks won the 2026 NBA Finals, but the work never stops in the world of basketball. The Knicks, just like every other team in the league right now, are preparing for the upcoming 2026 NBA Draft, which is set to get underway on Tuesday night at 8 p.m. ET.
Armed with the No. 24 and 31 overall picks in the draft, New York is in position to make a handful of different moves with these selections. The Knicks are currently assessing their trade options when it comes to these picks, but they are going to need salary cap space available in order to be able to navigate as they would like. As a result, the team made an important decision on the $4.5 million player option in Jose Alvarado‘s contract.
Knicks, Jose Alvarado Push Back Decision on Player Option
Alvarado didn’t begin the year with the Knicks, but after getting picked up in a trade with the New Orleans Pelicans, he quickly became a key piece of head coach Mike Brown’s rotation. While he may not post big per-game numbers (7.4 PPG, 3.4 APG, 2.5 RPG, 41.6 FG%), Alvarado is scrappy, and he finds a way to make winning plays on both sides of the ball.
New York is enjoying the celebration that comes with winning a championship, but it has some big decisions it has to make. That goes for Alvarado, too, as he has a $4.5 million player option in his contract. He could exercise that option and return to the Knicks for one more season, or he could decline it and test the waters of free agency.
On the surface at least, it seems like Alvarado wants to stay in New York, but he also feels he’s deserving of a raise. Ideally, this is an issue the Knicks would be able to deal with after the draft, but Alvarado faced a deadline of June 22 to make a decision on his option. That was until he and the team agreed to push this deadline back to June 26, giving the front office some extra freedom to navigate with during the draft.
“While the reigning champion New York Knicks assess their trade options for picks No. 24 and 31 in this week’s NBA Draft, sources say reserve guard Jose Alvarado has agreed to move the decision date on his $4.5 million player option for 2026-27 from tomorrow, June 22, back to June 26,” NBA insider Jake Fischer reported in a post on X.
Should the Knicks Sign Jose Alvarado to a Contract Extension?
GettySAN ANTONIO, TEXAS – JUNE 13: Jose Alvarado #5 of the New York Knicks celebrates with the Larry O’Brien Championship Trophy after the victory against the San Antonio Spurs in Game Five of the 2026 NBA Finals at Frost Bank Center on June 13, 2026 in San Antonio, Texas. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Gregory Shamus/Getty Images)
Alvarado has grinded his way to becoming a champion in the NBA, and while he won’t ever be a superstar by any stretch of the imagination, he has proven himself to be a sparkplug off the bench. There were a handful of times during the playoffs when Brown turned to Alvarado, and he changed the momentum of games for New York.
There’s no guarantee that the two sides will agree on a new deal, but Alvarado seems to be willing to work with the Knicks’ front office in order to get something done. For now, the draft has New York’s full attention, but in the coming days, a crucial decision will be made on Alvarado’s future with the team.
Knicks Make $4.5 Million Jose Alvarado Contract Decision Before 2026 NBA Draft