During WWI, the Ottoman Empire’s fleet was mostly obsolete (pre-dreadnaught) and not very seaworthy.
The most effective units were a couple of German ships, the SMS Goeben and SMS Breslau. Both were transferred to the Ottoman Empire Navy, the Goeben became the Yavuz Sultan Selim, and the Breslau became the Midilli. The Germans donned Turkish uniforms and fezzes and continued to crew them.
The Ottoman Empire DID have some very brave and clever fellows working the minelayers in the Bosporus and they actually bagged some battleships by clever mine placement...
With Great Britain in firm control of the Straight of Gibraltar, there was no way they were going to get home. So the next best thing was to arrange a flag transfer to the Ottoman Empire in the manner you described.
While you are right about most of the Ottoman's fleet being out of date, the sheer numbers were impressive enough to: