The New Orleans Pelicans have rewarded point guard Jose Alvarado with a two-year, $9 million contract extension. The news is shared by his agent to The Athletic. The deal includes a player option for the second year of the deal (2026-2027) season. Earlier the 26-year-old was set to become a free agent in 2025 and play the upcoming season on a player option for under $2 million. Alvarado has spent three seasons with the Pelicans after the team signed him as an undrafted free agent in 2021. The Georgia Tech product averaged 7.1 points, 2.3 rebounds and 2.1 assists in 56 games as a bench player last season. Alvarado tried to lock in the deal with the Pelicans the entire summer and finally Pelicans rewarded him with this deal.
Alvarado has secured guaranteed money that extends beyond the 2024-25 season, while also keeping the option to re-enter free agency in the summer of 2026. This strategic move allows the Pelicans to maintain one of their fan-favorite reserve guards on a manageable deal, alleviating immediate concerns as they focus on building a competitive roster. His salary for the 2024-25 season will not change, but the $1.988 million club option will become guaranteed as part of the extension.
Pelican's future
As the Pelicans look to the future, a key priority is finalizing an extension for fellow 2022 draft class member Trey Murphy. With his impressive development and critical role in the team’s success, Murphy is expected to command a deal exceeding $100 million. Both sides are engaged in discussions, but a resolution may not come until the extension deadline on October 21. If they fail to reach an agreement, Murphy would enter restricted free agency next summer, potentially inviting interest from other teams and complicating the Pelicans' plans.
This extension is vital for the Pelicans, who aim to solidify their young core around stars like Zion Williamson and Brandon Ingram. Retaining Murphy, known for his scoring ability and defensive prowess, will not only enhance their competitiveness but also reinforce the team’s long-term vision. The Pelicans are keenly aware that successfully navigating these contract situations will be crucial as they strive for sustained success in the challenging Western Conference.
Alvarado will make his debut as Murray's backup on Oct. 23 as the Pelicans open the season against the Chicago Bulls at home.
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