The heated confrontation occurred after the final buzzer, when Alvarado and Jackson shoved each other and exchanged words before players and team personnel intervened to separate them.
The altercation followed an earlier exchange between Brunson and Jackson during the game. Brunson, last season’s NBA Finals MVP, was caught on the television broadcast directing an insult toward Jackson while referencing Indiana’s defensive strategy.
“Box and one… Weak ass n****,” Brunson said.
The exchange added another tense moment to a matchup between two Eastern Conference opponents with recent postseason history.
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Despite the loss, Brunson delivered another strong offensive performance for New York, finishing with 33 points, 11 assists, two steals and one rebound across 36 minutes.
The star guard shot 11-for-22 from the field, including 4-for-9 from 3-point range, while converting seven of his eight free throw attempts.
However, his performance was not enough to prevent the Knicks from suffering their second NBA Cup defeat.
Indiana, meanwhile, improved to 5-8 overall and 1-1 in group play after securing the narrow road victory.
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The Knicks and Pacers will meet again later this month when New York hosts Indiana on Sunday, Nov. 22, at 8 p.m. ET.
For now, New York will continue its four-game road trip with consecutive matchups against the Toronto Raptors (5-7).
The Knicks will face Toronto on Sunday at 6 p.m. ET before meeting the Raptors again Tuesday at 7:30 p.m. ET as they look to bounce back from Friday’s disappointing loss.