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 includes a player option for the 2026-27 season, meaning that Alvarado is only committing to one more season in New Orleans: the 2025-26 campaign. Despite going undrafted in 2021, Alvarado has exceeded expectations and earned around $5 million in his career so far.
Alvarado’s performance on the court has been impressive, finishing sixth in Sixth Man of the Year voting last season. He is known for his ability to generate turnovers, particularly in the backcourt. His nickname “Grand Theft Alvarado” has become popular among players and fans alike. Additionally, he had a career-best shooting percentage of 38% on three-pointers last season.
Although Alvarado’s height is listed at 6 feet, he plays bigger than his size and can comfortably fit alongside different types of players. Signing him to a team-friendly deal is a significant win for the Pelicans as they look to manage their finances. With New Orleans currently over the luxury tax line this season and facing potential expensive contracts for Trey Murphy III and Brandon Ingram in the future, retaining Alvarado at a low cost provides valuable depth for their roster.
The Pelicans have benefited from Alvarado’s production at an affordable rate over the past three seasons, and now they will continue to do so for at least one more year. As one of the best backup guards in basketball, his presence will be crucial for New Orleans moving forward.
