2019-20 Minor League Thread - Rampage/Oilers

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Jessica

17 year Rampage sth
Jul 1, 2005
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San Antonio, TX
I assume that you need to have the owners of the team willing to sell, right? I'm sure that they are legally allowed to sell their team regardless of what affiliation agreements they have in place.

Maybe the villains should be the Rampage owners instead of Vegas? Clearly Vegas has cash to burn and it kind of sucks for fans of the Rampage who will be left without a team.

I've heard a rumor that Vegas offered more money than what the Rampage are worth. I can see why SS&E would want to sell if they could get more for the team.
 

Reality Czech

Registered User
Apr 17, 2017
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I've heard a rumor that Vegas offered more money than what the Rampage are worth. I can see why SS&E would want to sell if they could get more for the team.

That would make sense. If the team wasn't publicly for sale, then Vegas would have to make them an offer they can't refuse. We feel for all you loyal Rampage fans.
 

Coach Nate

Angry Rampage Expat
Aug 17, 2008
2,044
447
San Antonio
It was an unsolicited sale. The Rampage weren't actively looking to sell, but Vegas can with a $10M offer and the Spurs took it.
 

Kylester

Registered User
Feb 28, 2020
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Southern California
Rampage are now in 3rd place in the Central Division after beating Rockford IceHogs 3 - 0 today.

All goals scored in 3rd period, with one coming on the PowerPlay (Poganski) and Nolan scoring 30 seconds later. Ville Husso gets the 19-save shutout. Rampage had 29 shots on goal, 15 in 3rd period (Rockford only had 2 SOG in the 3rd period).

Josh Ho-Sang had an assist on the second goal. Klim Kostin had no points, but 5 shots on goal.

Rampage are one point ahead of Wolves, Grand Rapids, and Rockford and have games in hand on all three.

Finally...according to the AHL standings, Rampage have now won 5 in a row and 8 of their last 10.

Source: TheAHL.com | The American Hockey League
 
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Majorityof1

Registered User
Mar 6, 2014
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Central Florida
It was an unsolicited sale. The Rampage weren't actively looking to sell, but Vegas can with a $10M offer and the Spurs took it.

Only $10M? I wish the Blues had the right of first refusal (or used it if they had it). I know we don't want to own our minor league team. Still, I can't help but think $10M is a small price to pay relative to the team's budget to avoid the situation we are in now. I doubt the Rampage were bleeding money, with the Spurs running it. Even if the team broke even year-in-year out, the benefit to the big club of having its own AHL team should be worth that.
 

Kylester

Registered User
Feb 28, 2020
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Southern California
Only $10M? I wish the Blues had the right of first refusal (or used it if they had it). I know we don't want to own our minor league team. Still, I can't help but think $10M is a small price to pay relative to the team's budget to avoid the situation we are in now. I doubt the Rampage were bleeding money, with the Spurs running it. Even if the team broke even year-in-year out, the benefit to the big club of having its own AHL team should be worth that.

I have a feeling $10M was a typo...maybe a zero missing?
 

tfriede2

Registered User
Aug 8, 2010
4,518
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I have a feeling $10M was a typo...maybe a zero missing?
Nah. What assets is Vegas really purchasing? The intellectual property usually has some good value, but the Rampage is not a recognizable, national brand (and Vegas likely won’t use any of the IP anyway and will create their own). There’s probably very little tangible assets (Rampage likely leased all their facilities, vehicles, etc). The true asset here is simply having an AHL franchise to control, and $10 mil is probably about right. After taking into account coach/hockey personnel/team employee salaries (salespeople, customer service, etc), equipment purchases, service contracts, travel expenses, various insurance policies, advertisement expenses, etc, (and perhaps the AHL gets a cut of the revenue - not sure how the AHL makes its money) there’s little margin for error, and making a profit isn’t a guarantee. It could be viewed as a $10 mil gamble.
 

Majorityof1

Registered User
Mar 6, 2014
8,348
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Central Florida
Nah. What assets is Vegas really purchasing? The intellectual property usually has some good value, but the Rampage is not a recognizable, national brand (and Vegas likely won’t use any of the IP anyway and will create their own). There’s probably very little tangible assets (Rampage likely leased all their facilities, vehicles, etc). The true asset here is simply having an AHL franchise to control, and $10 mil is probably about right. After taking into account coach/hockey personnel/team employee salaries (salespeople, customer service, etc), equipment purchases, service contracts, travel expenses, various insurance policies, advertisement expenses, etc, (and perhaps the AHL gets a cut of the revenue - not sure how the AHL makes its money) there’s little margin for error, and making a profit isn’t a guarantee. It could be viewed as a $10 mil gamble.

But there are only 31 AHL franchises in the world, and most of them are not for sale. The supply is incredibly small. So that can potentially make it valuable. As an example, I have seen bars or restaurants that are losing money hand over fist be sold for quite a bit (relatively speaking) in areas that cap the number of liquor licenses. Even though the business is terrible, the liquor license is an asset that cannot be replicated and is essential for anyone wanting a successful restaurant. While not having team-controlled AHL team isn't essential, we have seen how difficult it can be not to have one for an NHL team.

Another thing to keep in mind is that its not always about the bottom line when companies acquire a subsidiary business. Sometimes its about controlling your supply chain. Having control of an AHL team allows the NHL team to control how its players are developed. Even if the AHL team does not make money, providing better players to the NHL team makes the NHL team more profitable. There are positive externaltities for the NHL team to own an AHL team that would not be there for a non-NHL owner. So even if the AHL team is not worth $10M on paper to a random buyer, it probably still is to an NHL team NHl franchises are valued between $300M and $1.65B (Blues were $530M in 2019 before the cup). That $10M can make the NHL team more profitable and hence have a value beyond what profit it brings in itself.

Edit: Not saying it worth $100M at all. Just that I am surprised we didn't make a play at $10M.
 

Bluesfan54

Registered User
Jul 28, 2014
527
146
Kansas City
Does anyone know how much money the Blues put into their new practice facility? I know public money was also used but I can't find the numbers. I'm thinking that the Blues, believing their minor league problems were settled for a while, put their money into that building. With that project done, maybe they will be able to own their own AHL team in the near future. One can hope.
 
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Kylester

Registered User
Feb 28, 2020
339
248
Southern California


Yes please. Bring back the Ice Cats

edit: our Assistant GM who runs the AHL team, Kevin McDonald, lives in Boston, so this would work out in more ways than one.


At this point, whatever works!!

By the way, Rampage lost to Grand Rapids 4-3 last night. Based on the box score, Adam Wilcox, the backup goalie, got the start. Guess they figured Husso needed a breather, but....based on the box score, it appears Wilcox imploded. He got pulled midway through the 2nd with the Rampage down 4-1 (last goal given up was SH). Husso came in and shut out GR the rest of the way. Rampage made it 4-3 (Kostin with last goal) with about 5 mins to go in the 3rd but couldn't tie it.
 

ezcreepin

Registered User
Dec 5, 2016
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Does anyone know how much money the Blues put into their new practice facility? I know public money was also used but I can't find the numbers. I'm thinking that the Blues, believing their minor league problems were settled for a while, put their money into that building. With that project done, maybe they will be able to own their own AHL team in the near future. One can hope.
I might be able to find out. My gf's uncle built the facility.
 

ezcreepin

Registered User
Dec 5, 2016
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Kostin has 21 points in his past 27 games. Looks like he's figuring out how to be a productive scorer.
22 points in his last 28 games, that's good for 29 goals and 35 assists over an 82 game season. His shots totals are nice too, he'd have 208 shots over an 82 game season as well. In his first 18 games, he only had 8 points, so seeing over a 1/3 increase in point totals is great to see for his development.
 

bleedblue1223

Registered User
Jan 21, 2011
51,863
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And Husso's numbers have really turned around. Hopefully he figured things out and is our backup next season. It would be nice if he leads them to the playoffs.
 

TK 421

Barbashev eats babies pass it on
Sep 12, 2007
6,460
6,114
Only $10M? I wish the Blues had the right of first refusal (or used it if they had it). I know we don't want to own our minor league team. Still, I can't help but think $10M is a small price to pay relative to the team's budget to avoid the situation we are in now. I doubt the Rampage were bleeding money, with the Spurs running it. Even if the team broke even year-in-year out, the benefit to the big club of having its own AHL team should be worth that.

I'm beginning to wonder if the money the team wasn't forced to spend on owning and operating an AHL team went directly to our scouting budget. At some point in the last 5 years our scouting budget was elevated to one of the most expensive in the league, mostly on the amateur side I believe. Is it a possibility that the team had a plan to spend more on scouting and owning an AHL affiliate was the sacrificial lamb to make it happen or are the 2 unrelated?
 
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bleedblue1223

Registered User
Jan 21, 2011
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I'm beginning to wonder if the money the team wasn't forced to spend on owning and operating an AHL team went directly to our scouting budget. At some point in the last 5 years our scouting budget was elevated to one of the most expensive in the league, mostly on the amateur side I believe. Is it a possibility that the team had a plan to spend more on scouting and owning an AHL affiliate was the sacrificial lamb to make it happen or are the 2 unrelated?
And continuing to spend to the cap. Not owning an AHL club might've been the best move all things considered. We won't know what those numbers actually look like and what lead to it, but it's a reasonable conclusion.
 
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JMCx4

Censorship is the Sincerest Form of Flattery
Sep 3, 2017
13,679
8,480
St. Louis, MO
I'm beginning to wonder if the money the team wasn't forced to spend on owning and operating an AHL team went directly to our scouting budget. At some point in the last 5 years our scouting budget was elevated to one of the most expensive in the league, mostly on the amateur side I believe. Is it a possibility that the team had a plan to spend more on scouting and owning an AHL affiliate was the sacrificial lamb to make it happen or are the 2 unrelated?
Maybe Tom Stillman wanted to add 5 more Vice President slots, as well. Something had to give. :whatever:
 
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