So #1 for #3 + #60? If you’re gonna move down from 1, you at least gotta get another 1st.
Depends on the draft year. The handful of times we've seen somebody trade out of #1 (Rick Dudley), they still got their intended target but didn't land an amazing package to move out. This isn't quite like the NFL.
1999: Tampa eventually traded #1 to Vancouver for #4, #75, and #88. Dudley kept things close to the vest but said that they would have taken Pavel Brendl had they kept the pick. He was hoping Brian Burke would improve on his fairly meager offer. Simultaneously Dudley shopped the pick for multiple pieces and eventually found a taker with the Rangers who also wanted Brendl. So since he was just acting as a middle man to deliver Brendl, Dudley accepted Burke's offer on the morning of the draft. Burke didn't know it, but he could have stayed put and gotten the Sedins at #3 and #4.
2002: Dudley was now GM of the Panthers. They were all set to take Jay Bouwmeester at #1. Columbus was set to take Rick Nash at #3 but suddenly got spooked when Philadelphia traded up to #4 on draft day. They were worried that Philadelphia could trade up to #2 to snipe Nash which would leave Columbus picking between a goalie they didn't need (Lehtonen) or a D (Pitkanen) that they didn't love. Dudley got creative and agreed to swap with Columbus for the right to swap picks in 2003. Essentially Columbus used its lottery odds as an asset. Florida then gave Atlanta a third round pick to pass on Bouwmeester at #2. In the end Florida won the 2003 lottery with its own odds so Columbus ended up giving nothing to secure Nash.
2003: Florida had the #1 pick and had Nathan Horton ranked as their top guy. Dudley was borderline shameless trying to publicly build up a bidding war between Carolina and Pittsburgh. In the end he accepted a forgettable deal from Pittsburgh: #1 and #73 for #3, #55, and Mikael Samuelsson.
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Other similar deals:
1993: San Jose traded #2 to Hartford for #6, #45, #58, and Sergei Makarov. Sharks room was split but eventually co-GM Chuck Grillo steered them to take Viktor Kozlov. Co-GM Dean Lombardi negotiated the trade down that was contingent on them still landing Kozlov.
1998: San Jose traded #2 and #85 to Nashville for #3 and #29. San Jose had just drafted Patrick Marleau the previous year so they were looking for a defenseman. Meanwhile Nashville was in its first draft and wanted a (perceived high scoring) forward to sell as the face of the franchise.
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If the Islanders were truly interested in trading down, they probably could get a better package than the OP suggests since San Jose or Utah could conceivably have interest which would drive up the price.