Pelicans news: New Orleans locks down Jose Alvarado for an absolute steal

The New Orleans Pelicans continue to make strong moves on the margins in the waning days of the 2024 NBA offseason. Shortly after topping off their training camp roster and rounding out their staff for the upcoming season, the Pellies made another major roster move. New Orleans has extended guard Jose Alvarado for two additional years for a total of $9 million.

In this new league economy, under the latest Collective Bargaining Agreement with its dreaded second apron, teams are desperately searching for ways to save money while maximizing their rosters. Incurring the consequences of the second apron essentially hardcap the offenders and handcuff them from making any further moves.

The Pelicans aren't in danger of hitting the threshold yet, but, with Brandon Ingram and Trey Murphy III hitting free agency in 2025, that could change very soon. That makes New Orleans's bargain extension of Jose Alvarado even more impressive and a move that could pay off dividends down the line.

Jose Alvarado could be on the most team-friendly contract in the league

Jose Alvarado is an incredible story. Coming out of high school, he was deemed just a three-star recruit by 247Sports and committed to Georgia Tech as the 165th-best prospect in the nation. He spent all four years of his college eligibility with the Yellow Jackets, steadily improving his game and increasing his role over time.

While he had an impressive collegiate run, he went undrafted in 2021 and signed a two-way contract with the Pelicans as a free agent. It didn't take long for New Orleans to call him up to the big leagues, as he wound up playing in 54 games in his rookie season and earning a "rest of season" contract that would keep him in the Big Easy through the 2024-25 season, with the last year being a team option. That deal paid him a little over $1.7 million per year.

This next contract essentially guarantees Alvarado that he'll have generational wealth to take of his family for decades to come, so long as he handles his money responsibly. While that's certainly nothing to scoff at and should be celebrated, there's no doubt that his two-year, $9 million extension was an absolute steal for the Pelicans.

So far in his young career, Alvarado has already established himself as one of the best reserve guards in the entire league. He's a pesky defender who's a nightmare for opposing ballhandlers and can singlehandedly disrupt offensive game plans. On the other end of the court, he's a solid shooter who seems to make the right decision nearly every time.

To have him potentially locked down through the 2026-27 season for just $4.5 million a year is an indisputable bargain for New Orleans. Here are a few guards who will make over $4.5 million in this upcoming campaign: Max Christie, Vasilije Micic, and Johnny Davis. While the extension is a steal for the Pelicans, the last year of the deal is a player option — one that he'll likely easily outperform and wind up declining.