There had been speculation the club would use its second and final compliance buyout to terminate the final seven seasons of Richards' contract, which runs through the 2019-20 season with a salary-cap charge of just over $6.67 million per season.
Richards had 34 points in 46 regular-season games but struggled in the Stanley Cup Playoffs, scoring one goal in 10 games and finding himself a healthy scratch for the final two games of the conference semifinals against the Boston Bruins.
The Rangers used their first compliance buyout on defenseman Wade Redden prior to the 2012-13 season.
I don't have a crystal ball. Predicting is a real complicated thing. If we stay healthy, have enough depth and get the good goaltending we think we're going to have, you can go all the way. But a lot of things have to happen. There's going to be a lot of teams that think the same thing. Everyone made deals. We're all are optimistic about where we'll end up.
— Rangers general manager Glen Sather after being asked if he's constructed a team that can win the Stanley Cup before their 4-1 win against the Predators on Monday