The Knicks are putting a bow on an extremely active NBA draft. Though the event isn't totally over after Wednesday night, as there'll be undrafted rookies to sign for tryouts or Summer League, it does represent the first big offseason milestone being cleared.Now, New York must turn its quick attention to free agency, which begins next week. The Knicks have a ton to sort out on the Mitchell Robinson and Landry Shamet front, from how much to pay them to replacement targets if they're allowed to walk.However, that's not the first thing Leon Rose and co. need to figure out post-draft.Knicks getting clarity on Jose Alvarado's player option is needed post-draft plansWhile Shamet and Robinson are dominating the free agency discussion for New York, an answer on Jose Alvarado's future is even more pressing. The trade acquisition turned Finals hero has a player option for the 2026-27 campaign, which he can either opt in to or decline. Alvarado can choose to pick up his option, which locks him into a guaranteed $4.5 million salary for next season. That's not a bad chunk of change for a backup, but given his play in the postseason and rising stocks, Alvarado could decline the option in favor of pursuing a bigger payday.That payday could come from New York, which may prioritize keeping the energetic guard given his role in securing the championship. There have been numerous instances of this kind of scenario, where a player with an option and a team work out the terms of an extension, so the player declines the one-year contract in favor of something longer-term to stick around.Followed up with Jose Alvarado after 8 days of celebrating 🤣🏆 pic.twitter.com/OJoi6a6f03— theScore (@theScore) June 24, 2026If the Knicks do extend Alvarado, or simply keep him on his one-year option, it will cut into the limited space they have to operate with as they aim to duck under the second apron. In turn, that will leave even less money for Shamet and Robinson, who'd then likely be on their way out the door.Of course, the other outcome is Alvarado declining his option to test the open market. While it'd be sad to watch him walk, it'd also free up more money to throw at Robinson or Shamet in hopes of returning.As a result, this makes whatever Alvarado decides a seismic event after the draft. It's going to directly influence what the team can do in free agency, whether that's focusing on retaining in-house players or pursuing replacements for those who'd be forced to walk should Alvarado come back.The Knicks and the veteran guard have already agreed to push back his original deadline of June 22. They could, theoretically, pursue another delay with a bit of time until free agency begins on June 30. But also having a definitive answer on Alvarado's contract status—whether it's just a one-year option, a multi-year extension, or coming off the books entirely, should he decline and want to walk—before then will better set the team up to make its next plans and shift focus to replacing anyone who appears on their way out.If Alvarado opts in or stays on an extension around a similar figure, Leon Rose and co. can look at the paths to re-sign Robinson or Shamet. Trading Miles McBride, who's now on an expiring deal and set for a significant pay raise, is one way to make up for the money Alvarado could take up and still be able to afford either of the top internal free agents.Or, if Alvarado becomes a goner, Rose and co. will be able to ramp up their talks with Robinson and Shamet with more money available to put on the table. This could keep them from resisting the temptation of free agency, allowing New York to hang onto both in some scenarios (which would involve a discount being taken).While Alvarado's $4.5 million price tag is not much in the grand scheme, the effects it has (whether officially being on the books or coming off of them) are numerous for a cost-conscious Knicks team; that makes his option decision a turning point for the offseason, no matter what ultimately comes of it.Add us as a preferred source on GoogleFollow