Report: Pelicans signing two-way Jose Alvarado to four-year, $6.5M contract
Signed to a two-way contract after going undrafted out of Georgia Tech, Pelicans rookie Jose Alvarado has had one of the most endearing seasons in the NBA.
The New York native basked in getting interviewed in front of friends and family after New Orleans beat the Knicks in Madison Square Garden:
Not prominent on the scouting report, Alvarado checking in caused Timberwolves guard D’Angelo Russell to ask (presumably his own team): “Can he shoot?” While dribbling, Alvarado called out, “Yes, I can shoot:"
Alvarado has repeatedly hid in the corner when opponents inbound then wreaked havoc in the backcourt:
Now, Alvarado is getting a standard contract.
Shams Charania of The Athletic:
Sources: The New Orleans Pelicans are signing two-way guard Jose Alvarado to a four-year, $6.5 million deal. Tremendous undrafted success story. Alvarado gets $3.4M guaranteed over next two years, including $1.5M for rest of this season on top of $800K he’s made so far.— Shams Charania (@ShamsCharania) March 28, 2022
Alvarado’s minimum salary over the next three years is $5,388,212. So, if he’s getting $1.5 million the rest of this season, the total deal must be worth more than $6.5 million.
But whatever the exact details, the overall picture is the same: Alvarado is betting against himself, and the Pelicans are getting a tremendously team-friendly contract.
Rather than chance free agency, Alvarado is locking into the longest-possible deal at a relatively cheap salary. That’s understandable. A guaranteed $3.4 million is a lot of money. A 6-foot guard who (contrary to his reply to Russell) doesn’t reliably shoot, the 23-year-old Alvarado can’t assume he’ll earn a larger fortune in the NBA.
But Alvarado has driven to score and pass well enough to stay on the court, where his pesky defines really shines. He’s already rotation-level player on a probable postseason team. Adding to Alvarado’s leverage: New Orleans needed to get him from a two-way contract to a standard contract for him to be postseason-eligible.
Yet, the Pelicans secure Alvarado long-term at or near a minimum salary. If he continues to produce, they’ll keep him on this relatively low-paying deal. If he doesn’t, they can waive him with minimal cost. It’s high-upside, low-downside for New Orleans.