Fresh off their 2026 championship victory, the New York Knicks barely had time to celebrate before James Dolan ruined the fun. In front of the whole world, he announced that his team would not be going into the luxury tax, leaving the fate of several free agents up in the air.
On Friday, however, the Knicks eased fan concerns by announcing the terms of their new contract with league veteran Jose Alvarado, who had a $4.5 million player option. The new deal, which comes days before the start of free agency, ensures the Knicks retain their scrappy guard for years to come.
“New York guard Jose Alvarado is declining his $4.5 million player option and intends to sign a new three-year, $14-plus million deal to return to the Knicks,” reported ESPN’s Shams Charania. “Knicks made it a priority to retain the NY native who played a key role on a historic championship team.”
Aside from the championship celebrations, it’s been a relatively quiet summer for the Knicks. In the draft, they traded out of the first round entirely, eventually settling on two rookies in the second: Jack Kayil (No. 39) and forward Tyler Nickel (No. 47). Re-signing Alvarado is arguably their most important decision to date in this offseason, and many argue it should have been an easy choice.
With averages of 7.4 points, 2.5 rebounds, 3.4 assists, 1.0 steals, and 0.1 blocks per game on 41.4% shooting this past season, Alvarado’s stats are modest for a backup point guard, but he does so much more than the stats show. As a glue guy in the locker room, a defensive pest on the court, and someone who carries a relentless fighting spirit, Jose’s impact was wide-reaching, and Josh Hart is happy that he’s returning.
💙🧡 https://t.co/Lr2UyHd3Mb
— Josh Hart (@joshhart) June 26, 2026
For the Knicks, Jose adds depth and versatility to the backcourt. Behind Jalen Brunson, he helps keep the offense running while leading by example on the other end. Really, he’s the perfect fit for a Knicks team that can be described as scrappy, determined, and ultra competitive.
But now that Jose’s deal is done, where does it leave other Knicks free agents? 29-year-old Landry Shamet is also currently unsigned, and he provided a nice spark for New York off the bench, with averages of 9.3 points, 1.8 rebounds, 1.4 assists, 0.6 steals, and 0.2 blocks per game on 43.7% shooting this past season. He’s arguably the most expendable of the bunch, but the Knicks may struggle to find someone as reliable on such an affordable salary (made $2.9 million in 2025-26).
Finally, there’s Mitchell Robinson. Out of any Knicks player, he’s considered the most likely to leave given his extensive injury history. With averages of 5.7 points, 8.8 rebounds, 0.9 assists, 0.9 steals, and 1.2 blocks per game on 72.3% shooting from the field this season, he wasn’t putting up big numbers, but his impact defensively was huge as an athletic, 7’0″ big man. With multiple teams in pursuit, the Knicks are unlikely to afford his loyalty, and even less so now after committing to Alvarado.
When it comes to the Knicks, we all know it’s about that main starting lineup, but we’ve seen how much depth matters in the NBA. It’s no different for the reigning NBA champions, and that’s why they wasted no time in making sure Jose Alvarado was taken care of before he was lured somewhere else.
