The boat under management is a huge phenomenon. The proof? The super group Brunswick Corp., which includes Boston Whaler and Mercury, among others, has just completed the acquisition of Freedom Boat Club with which the giant aims to secure an immediate large-scale, market presence in a rapidly growing shared ownership segment. This market operation demonstrates the importance and potential of the boats under management.
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Boat under management: a huge phenomenon
Founded in 1989, Freedom Boat Club (FBC) is considered the largest boat club operator in the industry, with 170 owned or franchised locations in the United States, Canada, and Europe. The organization boasts more than 20,000 members and a fleet of nearly 2,200 boats.
The Brunswick giant has acquired the Venice, Florida-based Freedom Boat Club. In this way, the group enters the world of management boats as a major player. The terms of the deal, which is expected to close in the second quarter of 2019, were not disclosed.
Boat management: what it is and why it is increasingly popular
Thanks to the continuous increase in the choice of charter boats for vacation, the phenomenon of “management boats” is gaining favor with impressive speed among those who want to buy a boat and those who rent one. How does the “boat under management” mechanism work?
HOW IT WORKS.
In summary, a shipowner buys a boat that he gives to a charter company that guarantees him an income for a number of years, derived from the rental of his boat. The shipowner can make use of its asset during certain periods and has not charged any management and mooring fees or charges.
At the end of the agreement between owner and management company, the boat returns to the availability of the owner who decides whether to sell it or keep it. The advantages for the owner are many, he does not have to take care of the boat, with the proceeds from management he can pay back the lease payments, he uses the boat whenever he wants.
BENEFITS FOR RENTERS
Also certain are the benefits to the rental company, which does not have to finance the purchase but do its job: make it pay off by renting it out as many weeks as possible over a year. But charterers also have advantages: these boats are often better equipped, newer, more prestigious models than a boat used only for charter.
This is because the boat is owned by an owner who also equips (and chooses) it for personal use. These are the mechanisms and benefits that benefit the three parties involved: shipowner, charter company, and party renting the boat.
