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Even Keels Cruising Club Inc (club website example only)

Beach Shells, Bathurst Head, Cape York, Queensland - by Grant Da Costa
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Even Keels Cruising Club INC 9897603 ABN 37599776442



So what are the key differences between membership in Even Keels Cruising Club and commercial yacht syndicates that we hear so much about?

Commercial syndicates vary, but in general the following will be true:

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Management company makes money from selling the boat, managing the syndicate and/or providing services such as cleaning and maintenance.

Not for profit. Aim is to minimise cost to members.

Schemes typically have a fixed time limit of 3 to 5 years after which the boat must be sold, the syndicate wound up, and the funds from the sale distributed to owners. This ensures regular turnover of boats by the management company, to their benefit and to the benefit of the boat manufacturer. The owners are hit with a large depreciation loss when the boat is sold.

No time limit to the Club. No premature forced sale of the boat. Members pay an annual depreciation subscription into a Club fund, the purpose of which is to ensure that depreciation is spread fairly amongst all people who are, or have been, members of the Club.

Operation of the boat is restricted to one, or at best two, fixed and limited geographical areas.

There is no limit to where Club members may agree to operate the boat.

Bookings are very restrictive – owners are allocated a certain number of weekends, weekdays and holiday days per year.

No restrictions, subject to fair and equitable access for all members.

Time aboard is often restricted to day sailing and short duration trips.

There is no limit to how long a Club cruise could go for, nor how far, subject to the Club’s annual cruising program which is determined by the members.

Owners don’t share the boat and don’t build relationships with others involved in the syndicate.

Members can choose whether they share or not. Each member has exclusive access to the boat as well as the opportunity to sail with other members during Club time.

An owner or the syndicate manager can sell a share in the boat to anyone, meaning anyone could end up in the syndicate.

Members do not own the boat, the Club does, so there is nothing to sell. Who becomes a member of the Club is controlled by the members of the Club.

Owners own the boat but have no control over it. Or in “Equity-less” syndicates, the syndicate members do not own the boat, the syndicate management company does (in this case syndicate members pay high fees to cover interest, depreciation, repairs etc on the vessel).

Members do not own the boat but have full control over it as a group.

Good for cash rich, time poor people who are tied to a particular geographical are because of work and/or family commitments.

Works for anybody.