Simon’s Blog

On this blog I almost always write about technology.  In this post, however, I thought I’d write about something that’s on the “toy wish list” of many a technology entrepreneur.  That is, a really fabulous boat.  On the price-scale of expensive toys, boats typically slot in above cars, helicopters and small planes; but below private jets.   The kind of boats I’m talking about are the sizable sports cruisers and yachts made by companies like Sunseeker.  Last week, I had the opportunity to look around a few Sunseeker cruisers and yachts, and to talk to some Sunseeker folks about what’s involved, not just in buying, but also in owning this kind of boat.   I thought I’d share some of what I found out.

Now, as a caveat, I should say that I can’t claim all the information here is completely accurate.  Why? Well, I tested the people I spoke to with some questions I already knew the answers to, and the responses I got weren’t entirely accurate.  Nevertheless, this post should hopefully give you some ballpark information that you might find useful and/or interesting.

What’s The Realistic Entry Level If You Want A Fabulous Boat?

With boats, the sky really is the limit in terms of price.  One thing I was interested in finding out was - what’s the realistic entry level, if the aim is not to feel too compromised when on board in terms of living and entertainment areas (which you need - after all, I assume you want to share your success with your friends)?  Obviously, your mileage may vary, but having looked at a few different models, the answer to me was actually crystal clear.  A 47-footer is too small; but a 53 foot boat is just fine.  So, for my money, that’s the entry level.  The 53-footer I looked at was a Sunseeker Portofino 53 (see pic below).

Now, compared to bigger boats, with this size of vessel there are obviously going to be compromises.  On the Portofino 53, the main compromise is with inside entertainment areas.  In fact, there isn’t really an inside entertainment area.  The main saloon (see pic below) is really just functional - but nicely fitted out - for sitting down for the odd meal, particularly if there aren’t too many people on board.  There is an outside entertainment area, though, which can be fitted out to seat six or so comfortably for general entertaining - and it feels like a spacious place to socialize in.

While the saloon is clearly compromised, the sleeping areas fair better.  The 53-footer sleeps six with good levels of comfort, and the main cabin, in particular, is a great place to be (see pic below).

By the way, sitting at the wheel of the Portofino 53 is really great - it looks like it would be a real blast to errrrr… “drive” - is that the right word?  I dunno - I’m a car guy!  The Portofino 53 has a range of up to 300 nautical miles.

What Size Of Boat Do You Need To Not Feel Compromised At All?

Now, if the compromises of a 53-foot boat aren’t acceptable to you, what size of boat do you need to overcome them?   Looking at them, the answer to me was not quite so clear as the “entry level”.  My feeling is that if you can run to an 86-foot or 90-foot boat (see the Sunseeker 90 Yacht at the top of this post), you get a truly fabulous “no compromise” indoor entertainment space with separate seating and dining areas; as well as several great outdoor entertainment spaces.  By way of comparison with the Main Saloon in the Portofino 53 shown above, here’s a photo of the Main Saloon in a Sunseeker 90 Yacht.

As you can see, there’s a separate dining area at the back, and a great seating for enjoying a late-night cocktail or two when you return to the boat after an evening on shore.   As you might expect, the sleeping accommodation is more spacious than in the 53-foot boat.

The range of a Sunseeker 86 Yacht is 50 nautical miles greater than the range of the 53-footer at 350 nautical miles.

What Do These Things Cost?

OK - let’s cut to the chase.  You want one!  But, what do these kinds of boats cost to buy, and equally important, to run.  Well, here’s the scoop. Let’s start with the Portofino 53.

• Purchase price - the Portofino 53 will cost in the region of £750K (+tax) to buy
• Depreciation will be around 10% per year for the first few years
• All costs of ownership will total around £55K a year (assuming you look after it yourself i.e. no crew).  That’s just about doable for a boat this size, but only just.
• So, over three years, you’re looking at a cash burn of: £225K in depreciation, plus £165K in running costs.  That makes a grand total cost of c. £0.4M over three years; with a peak cash requirement of just under £1M, assuming you sell the boat at the end of the three years.

If you wanted to employ a captain to look after the boat for you, you’d have to pay them a salary of £40K-£50K per year. So, that’s the 53 footer.  How about the 86 Yacht (similar to the 90 footer in the pics above)?  It’s significantly more expensive:

• Purchase price - the 86 Yacht will cost around £3M (+tax) to buy
• Depreciation will be around 10% per year for the first three years
• All costs of ownership will be around £230K per year (assuming you employ a captain and a captain’s mate to look after the boat for you).   Unless you want to spend your life looking after the boat, you need a two-person crew for this size of vessel.
• So, over three years, you’re looking at a cash burn of: £0.9M in depreciation; plus £0.7M in running costs.  That makes a grand total of c. £1.5M over three years; with a peak cash requirement of around £4.5M, assuming you sell the boat at the end of three years.

As you can see then, owning and running a “minimal compromise” 86-foot boat is significantly more expensive than the “acceptable compromise” 53-footer.  So, if you’re going to buy one - which should you choose?   It obviously depends on the size of your wallet, and whether you want to employ a crew.  If you’ve got plenty of capital, and don’t mind blowing half a million quid on owning a boat for three years, as a way of celebrating your hard work and successes, then the Portofino 53 is a great buy.  I don’t think you’d be disappointed - it’s a great boat. If you’ve got the cash burning a hole in your wallet though, for my money, blowing one and a half million quid on the 86-footer for three years, is in many ways better value for money.   It’s really much more usable in the ways I suspect people would want to use it.

Now, I should say that what I’ve tried to get a handle on here are the “maximum” costs.  Particularly for the larger boats, there are good opportunities to offer them for charter, which could significantly off-set costs (think of gross revenues up to around £30K-50K per week for one of the big boats).   There are no guarantees on that though, which is why I wanted to understand the out-goings required to run these boats.

That’s the deal then.  Now you know what you need to achieve, if you want one of these things - or what you need to spend, if you’ve already achieved them By the way, before you start hating on me for talking about super-extravagant toys like these - I’m not actually ready to buy either of these!  One day, though, perhaps. These things look like big fun!