Defensive specialist Jose Alvarado has agreed to a two-year, $9 million contract extension with the New Orleans Pelicans, according to The Athletic. The deal comes with a player option for the 2026-27 season, meaning that Alvarado is really only locking in one more season in New Orleans: the 2025-26 campaign. An undrafted free agent in 2021, Alvarado has earned around $5 million total thus far in his career.
He has vastly outperformed both his expectations and salary to this point in his career, finishing sixth in Sixth Man of the Year voting last season. He is one of the NBA's most dangerous turnover generators, particularly in the backcourt, with "Grand Theft Alvarado" becoming everyday parlance among players and fans alike.
He's also coming off of a season in which he shot a career-best 38% on 3-pointers. His relatively diminutive stature (he's listed at 6-foot) limits his versatility, but he plays bigger than that size and can fit comfortably alongside almost any type of player.
Signing Alvarado to a team-friendly deal, even if it only assures him one more year in New Orleans, is an enormous win for the Pelicans. New Orleans is over the luxury tax line this season, and history says they will try to duck it before the end of the year. That will be much harder during the 2025-26 season. Both Trey Murphy III and Brandon Ingram are due new contracts, and while they may not retain Ingram, they still need to find a long-term solution at center. Between Murphy and whichever new big man they end up choosing, they are destined to have an expensive roster. Retaining a key bench piece at a low number will go a long way for them in having contending-caliber depth.
New Orleans has gotten great production out of Alvarado at a bargain rate for the past three seasons. Now they'll continue to do so for at least this year and next. One of the best backup guards in basketball is staying with the Pelicans for at least one extra year.