The Numbers

How can FREEDOM offer Residences at a much lower price per sq ft, compared to the prices the other Residential Cruise ships sell their Residences for? How can FREEDOM sell a cabin for 1 week (7 days) every year for 50 years, for 2 people, at such a low price? How is it possible that people who buy either Full or Fractional Residences never have to pay any ongoing maintenance fees, fuel costs, and other continuing operational costs as is the case with all the other residential cruise ships and land based “timeshare” properties that offer similar “Fractional” ownership? How do the numbers work to keep this ship financially solvent?

Here are the “numbers”. They speak for themselves.

First a few basic facts that will factor in when doing the “numbers”.

All the numbers on the SHIP are scalable. The interest level of people looking to buy a Full or Fractional Residence, and the actual committed sales will determine the size of the ship and how many Residences/Cabins are in each category. The larger the SHIP, the higher percentage of profit. There is a “break even” point, where if sales are not high enough, the SHIP will not be built. 

Here are the numbers and assumptions based on initial interest levels, and shown as an example only of what could happen.

Category 1: Fractional Residences

The SHIP will have 1500 cabins that will be sold in weekly “Fractions”. 

Each cabin will hold 2 people, be identical, the same size, all with balconies.

These cabins will be sold for 40 weeks per year. 

This leaves 12 weeks per year that these cabins will be empty. 

We are keeping 2 weeks every year free for ship maintenance. 

This leaves 10 weeks a year that the 1500 cabins will be empty (and the SHIP used for other income producing purposes).

Category 2: Full Residences

The SHIP will have 100,000 sq ft of space for “Full Residences”. 

Before the ship is built, Residences can be custom designed by the purchaser with the square footage desired.

We anticipate that 200 people will purchase Residences. Some will be smaller or larger in size than others based on the needs and budget of the purchaser.

Category 3: The SHIP “Hotel Cabins”

The SHIP will have 300 cabins used as “Hotel Rooms” that are rented out as is standard in the cruise or hotel industry.

Category 4: Crew Cabins 

The SHIP will have capacity for 3000 full time crew members. The actual crew needed for the ship is approximately 2500. This leaves plenty of room for extra staff when required. It also allows the SHIP to offer “apprenticeships” and other “very low cost” accommodations to CLUB members who may not be able to afford sailing on the ship via the other options. This can produce additional revenue. Most crew cabins will be “singles” for privacy and as an extra “perk” to attract top quality crew (most cruise ships are shared cabins for crew).

Category 5: VIP Residences

The SHIP will also have a Residence for Kevin Trudeau and a few additional Residences set aside for top CLUB members, executives, visiting dignitaries, VIP’s, Celebrities, and Royalty when visiting the SHIP.

SHIP passenger capacity = 4000

SHIP crew capacity         = 3000

TOTAL SHIP capacity      = 7000 people

The Financial Numbers

INITIAL REVENUE

-1500 cabins sold at $75,000 (this gives the buyer a cabin for 7 days a year, every year for the life of the SHIP) = $112,500,000 USD x 40 weeks = 

$4.5 Billion USD

-200 Residences (100,000 Sq Ft) at $6000 per SQ FT = 

$600 million USD

Total Initial Revenue =

$5.1 Billion

INITIAL COSTS

Ship building costs (all inclusive) =

$1.5 Billion

Payouts to initial investors, to the CLUB, start up costs, and operating costs incurred before the SHIP launches and for the first year of SHIP at sea =

$600 Million

Total Initial Costs =

$2.1 Billion

INITIAL SURPLUS

Initial revenue ($5.1 Billion) – Initial Costs ($2.1 Billion) =

$3 Billion SURPLUS

ONGOING ANNUAL REVENUE

  • Hotel room (cabins) rental at $400 per person per night at only 50% capacity for 300 nights = 

$36 Million (low estimate)

  • On board spend at $25 per person per day for 350 nights (3000 people per night vs. capacity of 3600 plus crew) =

$26 Million (low estimate)

  • $3 Billion cash reserve interest and dividend income at 3% =

$90 Million (certain college endowment funds have averaged 6% per annum over the last 50 years, and annuities today pay a guaranteed 4% return, thus this number could be substantially higher)

  • Charter income: 4 weeks at $4 million per week (to the CLUB or other entities) =

$12 Million (Just the anticipated CLUB needs by the time the ship is built is 3-6 weeks per year. Other charters possible, thus this number should be higher starting with year 5, and could be higher in year one)

  • In house Seminar income: 4 weekly whole ship events at $10,000 per person (3000 guests vs. capacity of 3600) = 

$120 Million (Forbes alone does 3 whole ship cruises per year at an average of over $15,000 per person. This could be double starting from the first year of operations, as the number of events could go to 8 and the price per person could go as high as $30,000 per person average or even higher)

  • Additional revenue from unused “crew cabins” =

Not factored in at this time

TOTAL ANNUAL REVENUE (starting year 1)=

$179 Million

ANNUAL OPERATING EXPENSES

Fuel = 

$50 million

Food =

$25 million

Crew = 

$50 Million

Operations (includes ship maintenance, port taxes and fees, insurance, and all other land based expenses) =

$25 Million

ANNUAL PROFIT/LOSS STATEMENT

Revenue  = $179 Million

Expenses = $150 Million

PROFIT    = $ 29 Million starting year ONE with potential to increase to over $50 Million or more per year within 5 years of launch

Annual “Profit” can be added in whole or in part to the “Investment and Surplus Fund” used to generate interest and dividend income, thus creating compounding returns and increasing annual revenue. “Profit” could also be disbursed at the discretion of the Board.

All numbers are guesses and estimates and will change. 

This document is not a prospectus. This is not an inducement or solicitation for any kind of investment. This is not a solicitation for the purchase of a Residence or anything else. This entire document is for discussion and informational purposes only. This document contains only the opinions, and vision of one person whose desire it is to manifest such a dream.