The New York Rangers are facing a critical juncture with star winger Artemi Panarin as he enters the final year of his seven-year, $81.5 million contract. With Panarin set to become an unrestricted free agent next July, General Manager Chris Drury must decide whether to pursue a contract extension or explore a trade. The team's performance in the first half of the 2025-26 season will likely dictate the Rangers' approach leading up to the trade deadline.

So far, the Rangers have had a rocky start to the season, reflected in their 3-4-1 record. Their struggles at home, particularly the lack of goals scored at Madison Square Garden, have fueled fan frustration and external speculation. Despite Panarin recently breaking a slump with a four-point game against the Montreal Canadiens, the team's inconsistency has raised questions about their long-term prospects.

According to NHL insider Frank Seravalli, the Rangers are carefully evaluating their team's strength before making any decisions regarding Panarin. Drury isn't afraid to trade Panarin if the Rangers aren't Stanley Cup contenders. This stance reflects a willingness to make bold moves, as seen in past trades involving key players like Jacob Trouba, Chris Kreider, and others.

The Rangers reportedly offered Panarin a contract extension with a reduced salary cap hit, similar to Anze Kopitar's recent deal with the Los Angeles Kings, but Panarin declined. This suggests Panarin is aiming to maximize his earnings, potentially seeking a deal close to $10 million annually. His focus is on performing well in the regular season and playoffs to increase his value.

Several teams could be interested in acquiring Panarin, including the Minnesota Wild, Vegas Golden Knights, and Florida Panthers. A trade to the New York Islanders is unlikely due to the rivalry between the two teams. One potential trade proposal involves sending Panarin to the Dallas Stars in exchange for Jason Robertson, a move that could benefit both teams.

Ultimately, the decision on Panarin's future rests on the Rangers' performance in the coming months. If they fail to establish themselves as contenders, Drury may look to trade Panarin for valuable assets. However, if the team improves and demonstrates its ability to compete, Panarin could remain a key part of the Rangers' long-term plans.