The first rule of fight club is you don’t talk about fight club.

And the first rule of NBA free agency is you pay as many of your guys as you can, especially after winning it all.

So far, so good for the reigning NBA champion New York Knicks, who have re-signed Mohamed Diawara, Jose Alvarado, and Landry Shamet.

Alvarado declined his $4.5 million player option before re-signing with New York for three years and $14-million. ESPN’s Shams Charania was first with the report.

This deal should get a resounding A+ grade from the fanbase, and there’s more than one reason why.

The fit

Alvarado averaged just 6.6 points and 3.8 assists per game with the Knicks, and his playoff numbers leave a lot to be desired.

His fit within the system that head coach Mike Brown took a year to establish, and alongside the team’s two stars, can’t be ignored.

Playing a two-guard lineup of Alvarado and Jalen Brunson was pivotal in New York’s series against the San Antonio Spurs. The numbers reinforce that.

  • In 179 minutes with Brunson on without Alvarado, the Knicks were -8, posting a -2.2 net rating, 108.1 offensive rating, and 110.4 defensive rating.
  • In 43 minutes with Alvarado and no Brunson, the team was +4, posting a 5.3 net rating, 122.7 offensive rating, and 117.3 defensive rating.
  • In 17 minutes with both on the floor, New York was +16, posted a 51.6 net rating, 138.7 offensive rating, and 87.1 defensive rating.

Alvarado and Karl-Anthony Towns‘ chemistry was most prominently on display in the regular season: +92 in 256 minutes without Brunson. It was a positive lineup in the Finals, too, going +4 in 37 minutes.

Now that he’s re-signed, Alvarado and Towns will remain reliable options for Brown and the Knicks, particularly in minutes without Brunson.

The player

It’s rare for a role player to arrive at a new team with widespread fanfare. But that was the case for Alvarado when he was acquired at the trade deadline.

He’s a Brooklyn native who’s had to earn every leg of his NBA career.

Ironically, that proved true even after New York traded for him: coach Brown shuffled him around the rotation, and even out of it entirely, before turning back to him in the NBA Finals. Alvarado had his Knicks moment in Game 4, and the rest is history.

This was a part of an 8-point, 3-assist fourth quarter he put together in New York’s comeback from down 29. If you need reminding.

Alvarado’s emotions aren’t on his sleeve; they are sewn into his uniform. The way he carries himself on and off the floor, playing or not, embodies sportsmanship.

I compared his arrival to Josh Hart’s back at the deadline, and now, I can’t imagine watching Knicks basketball without either of them. Thankfully, I won’t have to, barring any extreme circumstances.

The contract

Alvarado’s salary–estimated at $4.6 million annually–will sit among the league’s best in value moving forward.

Couple that with the $3.9 million owed to Miles McBride, or the Shamet’s $6 million, and you’ve got a compelling package to upgrade the roster if need be.

A look at some of the deals signed around the league this week is all the evidence you need:

  • Collin Sexton, two years and $19 million ($9.5 AAV)
  • Keon Ellis, two years and $18 million ($9 million AAV)
  • Marcus Smart, two years and $13 million ($6.5 AAV)

Sexton and Smart will serve the same roles as Alvarado, sixth men on their respective squads, and Ellis is just a flat-out overpay. But I’d take the Knicks’ fiery Puerto Rican guard over all three, especially at his price point.

If you’re keeping up with the news, and I’ve no doubt you are, New York is down to one center on the roster. We’ll have more on that here at Knicks X-Factor later.

So, Ariel Hukporti and Mitchell Robinson have departed for new teams in free agency, and fans are in a frenzy online.

If the decision makers behind the Knicks’ title team decide Alvarado’s expendable, he’s one of multiple salaries that hold more value than their price tag.

Worst comes to worst, trading him for a more qualified backup big later in the year will be on the table, once the six-month restriction is lifted.

The same goes for Shamet. But let’s cross that bridge when/if we get to it.

For now, sit back, blue and orange faithful. New York is still on top of the league, and they’ve retained almost their entire roster from the title run.

Jose Alvarado is prime among them. And as someone who got here at the trade deadline last year, I wouldn’t be surprised if we haven’t seen the best of him yet.