... the league yesterday did not approve an informally-submitted deal that would have sent Palffy, Brian Smolinski, Mike Watt and minor league goaltender Marcel Cousineau to the Kings for B-level prospects Mathieu Biron, Scott Barney and Josh Green, minor league forward Jason Podollan, and the eighth overall pick in the June 26 Entry Draft.
Which means that the Rangers, who believed they had struck a deal for Palffy last weekend, are not only back in the mix, but are again in reasonably good position to acquire the sniper, though it is unknown how quickly the process will move.
And while management now waits for the Islanders’ next step in what has become an unpredictable and embarrassing chain of events, Todd Harvey and Niklas Sundstrom remain in limbo. Sundstrom, according to those who have spoken with him since last weekend, is devastated by the news of his potential move to Long Island.
Sources have told The Post that Mike Milbury yesterday spoke with Neil Smith in an attempt to get the Ranger GM to bolster the package for Palffy, now that cash has been taken off the table. Smith, stunned that the Islanders presented an obviously inferior L.A. deal to the league for approval, is steadfastly refusing to add any components to the package that includes Harvey, Sundstrom, a minor leaguer and the 11th overall pick in the draft.
Milbury as well has re-opened talks with the Kings, and is attempting to convince Dave Taylor to substitute Oli Jokinen, an elite prospect, for one of the aforementioned youngsters. Taylor until now, at least, had refused to include the center in a deal for Palffy.