The Rangers have done a fabulous job of upgrading this off-season, setting themselves up as legitimate Stanley Cup contenders with the additions of Scott Gomez and Chris Drury to their already talented forward corps. But things aren’t all peaches and cream in the Rangers’ camp, not after a surprisingly confrontational arbitration hearing with gritty forward Sean Avery.

The Blueshirts’ play improved dramatically last season following Avery’s arrival, largely because he provided a sorely needed abrasive element to a team that was entirely too easy to play against. However, it seems that the Rangers have decided to leverage Avery’s long history of controversy and irresponsible play in his arbitration hearing, rather than his short but inspired performance on Broadway. Intheir brief to the arbitrator, they reportedly described Avery as “a reasonably effective player as well as a detriment to the team.”

It’s true that Avery’s on- and off-ice behavior hasn’t been exemplary throughout his short career, and it was certainly the Rangers’ right to cite his lapses in judgment when attempting to convince the arbitrator to issue a lower salary award. But the negatives of this situation would appear to far outweigh the positives, especially with the two sides only about $1 million apart.

Indeed, an unhappy Avery would be detrimental to the Rangers’ Cup hopes in 2007–08. His presence was without question critical during their run to the playoffs last season, and the potential for him to be a divisive locker room influence should not be taken lightly. The Rangers have constructed their roster to compete for the Cup in 2008, and they cannot under any circumstances tolerate Avery’s presence if he proves to be a distraction.

Making the Avery turmoil particularly disturbing is the fact that the Rangers were otherwise poised to ice their best squad since they won the Stanley Cup in 1994. With the additions of Gomez and Drury, GM Glen Sather addressed one of the Blueshirts’ most serious weaknesses. Not only will that duo capably center the Rangers’ top two lines, but they’ll provide invaluable experience as former Cup winners.

To make room for the new pivots, the Rangers wisely decided to part ways with Michael Nylander. While Nylander was a strong contributor over the past two seasons, his production was largely attributable to the presence of Jaromir Jagr on his wing. Given the high cost of re-signing Nylander, Sather was better off putting that cap space toward the acquisitions of Gomez and Drury, both of whom are far younger and more impactful.

Sather also managed to get Brendan Shanahan, Petr Prucha, Jason Strudwick, and Marcel Hossa under contract. Hossa avoided a scheduled arbitration hearing when he agreed to a 1-year, $780,000 deal yesterday. So, as of press time, Avery remained the only unsigned Ranger.

In another maneuver, Sather made the questionable decision to jettison center Matt Cullen to the Carolina Hurricanes in exchange for defenseman Andrew Hutchinson, forward prospect Joe Barnes, and a 2008 third round pick.

While the trade does make good fiscal sense — Cullen carries a considerable cap cost of $2.875 million for each of the next three seasons — his departure leaves a large hole on the Blueshirts’ third line. And with Avery’s arbitration hearing taking a sour turn, it seems most likely that Blair Betts will now center the checking line, representing a meaningful drop-off in both experience and skill.

Things remained far more static on the blue line, where Hutchinson is the only veteran addition to a defense corps that should once again include Marek Malik, Michal Rozsival, Fedor Tyutin, Paul Mara, Daniel Girardi, and Strudwick. Also expected to compete for a starting job is top prospect Marc Staal, a smooth-skating, physical defenseman who should soon emerge as the Blueshirts’ finest all-around rearguard since Brian Leetch was dealt away at the 2004 trade deadline.

And finally, in what was likely the Rangers’ most important move of the off-season, they inked goaltender Henrik Lundqvist to a surprisingly lucrative $4.25 million one-year deal, thus avoiding taking their star netminder to arbitration. Beginning on January 1, the Rangers will be allowed to sign Lundqvist to a long-term extension, and given his importance to the team’s success, it’s fair to expect that deal to get done as soon as it’s permissible under the collective bargaining agreement.

The Rangers battled their way to the second round of the 2007 playoffs and should be considerably better in 2007-08. But while the high-profile newcomers will be judged most harshly should the season be a disappointment, it’s actually the Rangers’ depth players — in particular, Betts and their emerging young defensemen — who will play as critical a role in the team’s potential success.

With the botched handling of Avery’s arbitration hearing, the team’s locker room chemistry is now in serious danger. As a result, what once looked to be an incredibly successful off-season for the Blueshirts has now been marred with some very real concerns.

Rangers’ Grade: B+

[On Friday, the Islanders’ and Devils’ off-season grades.]

Mr. Greenstein is the editor in chief of InsideHockey.com.