In conversation with owner Tom Saylak
The property businessman and owner of S/Y Genevieve talks about his decision to buy a second hand yacht rather than build one, and how he runs his yacht for financial efficiency.…
Tom Saylak in New York. Image: Oli McAvoy
Having decided that better value was to be found in purchasing from the existing pool of superyachts rather than building from scratch, three years ago Tom Saylak set about an exhaustive search for the perfect vessel to meet his needs. He found S/Y Genevieve, the 37m ocean-cruising cutter, designed by Dubois Naval Architects and built by Alloy Yachts. Saylak, who took a shrewd approach to buying and running a yacht from the outset, sat down for a chat with Esther Barney in his hometown in New York about his experiences three years down the line.
Has your view of running the yacht like a business changed since you bought her? My background is in the real estate business. Real estate values ebb and flow depending on the market conditions but, by and large, when the price of My background is in the real estate business. Real estate values ebb and flow depending on the market conditions but, by and large, when the price of buying an existing building gets substantially less than building a new building, people stop constructing new buildings and start buying existing ones. You have to decide if you consider your yacht like a car or a house. If it is like a car, the assumption is that as soon as it becomes old, it loses its value. If it is like a house, that is not the case. From what I have seen, the industry plays with these two somewhat, depending on the client’s situation and point of ownership. The reality is that yachts do not hold their value, but I think that the gap between the perceived value of an older vessel and a new build has become insane. To build a yacht of the same size as S/Y Genevieve would be three or four times the cost of buying her. When you take into account that there is a lot of inventory on the second-hand market, it makes the case for the brokerage market over the new-build market even more compelling.
Why were you particularly drawn to this length of yacht over a larger one? I love the size of Genevieve. If I had limitless energy and funds to buy a larger yacht, I still don’t think I would because it is not the experience I am after. In my mind, once you get over 140ft, sailing yachts are a completely different experience for an owner when taking the helm because there’s a lot of power, a lot of water line, and a lot of sail area. I wanted a superyacht that was similar enough to my bareboat charter sailing experience but with manoeuvrability that was within reach and enough space for my family, without being afraid to take the helm.
It seems you weren’t hung up about the builder of the yacht… No, that’s not the case. We wanted a yacht from a reputable builder, but we were focusing keenly on yachts designed by Ed Dubois, and he had a long collaboration with Alloy and Fitzroy. The fact the yacht had been build by Alloy was a very positive thing.
Do you get involved in the detailed decision making on operations and maintenance? I do; if I was still working 80 hours a week then I wouldn’t have the time for it, but this is now my hobby and I find it intellectually stimulating, fun and interesting. I have learned a lot about this the hard way, probably by overspending in some areas, but I feel that if you want to get the most out of something you are interested in, you have to roll up your sleeves and try to understand what is going on. I have been really lucky to have a very patient captain and an exceptional management company, McMaster Yachts Management, and both have been very supportive the whole way through, adding a lot of value.
Legally, you didn’t have to have a management company, so why did you go to the extra expense? Any time you’re going into the jungle, you need a jungle guide! I always felt that it was a luxury that I could avail myself of at the start while I was learning, and then gauge how much I really needed management later on. I have found that a management company can save you a ton of money if they are vested with that responsibility. When I was recruiting crew, I made it clear that I wanted a management company involved in running her to make sure we were crossing the Ts and dotting the Is. There’s no question that it helps retain the value of the vessel, as well as other aspects that provide checks and balances of the safety on board.
The busier your boat is, the more you need management, and the more you can afford it. The management company allows you to leverage your captain’s time more effectively. My captain and I have a steadfast rule that, if he is on charter, we don’t bother each other. His guests need to have 100 per cent of his attention, so I don’t want him worrying about accounts, the upcoming yard period or the next itinerary. Because the boat is busy, the management company can deal with these. This works if they have a good relationship and trust one another. It allows the captain to be more effective and I think it allows the yacht to be more charter active, which is what makes the boat work.
Did looking for a yacht in this formulaic way take the excitement out of the process? Not for me. Ed Dubois builds breathtakingly beautiful yachts. It’s a reliable, time-tested design and I like the clean lines; all the guts of his yachts – the winches and so forth – are hidden. I had that image in my mind for the yacht I was seeking in terms of a look and materials. Once you start eliminating the things you don’t like, it gets easier. But the problem is that when you get down to the last few you worry if the yachts on the short list are actually for sale.
For a first-person account from Tom Saylak on his ‘five rules of the road’ for finding his dream yacht, Genevieve, pick up Issue Four of The Superyacht Owner at this year’s Monaco Yacht Show or become a member today.
S/Y Genevieve under way
Click here to become part of The Superyacht Group community, and join us in our mission to make this industry accessible to all, and prosperous for the long-term. We are offering access to the superyacht industry’s most comprehensive and longstanding archive of business-critical information, as well as a comprehensive, real-time superyacht fleet database, for just £10 per month, because we are One Industry with One Mission. Sign up here.
