After 58 Years, a Shot at Olympic Gold

John Dane III is a lifelong sailor and has made millions as founder of the nation's largest mega-yacht builder. But in August, at the age of 58, he'll be making a run at a gold medal as the oldest member of the 2008 U.S. Olympic team in Beijing. As he puts it, "I'm living the American dream."

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World-class sailing requires a lot more skill and brainpower than the lazy summer margarita-soaked afternoon rides sprung from Jimmy Buffet's imagination. "It's a thinking man's sport," says John Dane III. And, as the oldest member of the 2008 Olympic team (and the oldest in the last 50 years), the 58-year-old Dane knows which way the wind blows. He grew up in New Orleans learning to sail on Lake Pontchartrain and as a member of the famed Southern Yacht Club. It's also where he founded Trinity Yachts, the nation's largest mega-yacht builder, with projected revenue of $175 million in 2008 and $230 million in 2009. The average yacht on order runs about 180-feet and costs $35 million, but Trinity is also constructing one that will be 242-feet and come in at just under $100 million.

The company's uber-wealthy clientele typically have a net worth of over $100 million, so riding out the current economic storm isn't a problem. But Hurricane Katrina was. Sure, two employees hunkered down to keep an eye on the Industrial Canal shipyard with lobster and barbecued ribs aboard the 160-foot Zoom Zoom Zoom yacht, but Trinity's facility ended up sunk under 14-feet of water and they were forced to move the operation to a Gulfport, Miss., shipyard at a cost of $20 million. Dane's home in Pass Christian was wiped out as well, so he moved his family onto a houseboat and got back to work. In the immediate aftermath of Katrina, Trinity gave every employee $1,500 and spent $4 million building 3-4 bedroom mobile homes in a community near the new site. Katrina cost Trinity some $30 million, but as of today, the company has 1,000 employees (including subcontractors), a record backlog of 25 boats, and has even moved some operations back to its original New Orleans shipyard, which was the former home of Higgins Industries where the famous World War II D-Day transport boats were built.

It hasn't always been smooth sailing for Dane, but he's primed to fulfill his longtime Olympic journey come Aug. 15. A warm, friendly man, Dane was kind enough to speak with Inc.com just before-and-after an emergency root canal. Another storm to weather perhaps, but no sailor wants to be distracted by a toothache while trying to bring home the gold out on the Yellow Sea.

Thanks for talking to us today.

Dane: I just returned from two weeks of training in Qingdao, which is the home to the Olympic Sailing Center and where the sailing events will take place. I'm glad I was back home and didn't have to get emergency dental work in China.

How did you get into the yacht-building business?

Dane: I've been on the water my whole life and my love of sailing introduced me to the yachting scene. After college, I worked for a company called Halter Marine before starting my own shipyard, Moss Point Marine, in 1980. Later, Halter bought my company and I went to work for them, starting Trinity Yachts as a division in 1988. In 1999, Halter merged with Friede Goldman International. It was now a big public company and I decided to retire. A few months later in 2000, Halter was going to spin off Trinity Yachts, so myself and two partners used personal money to buy the company and take it private.

Why did you think Trinity presented a solid opportunity?

Dane: We'd started the yacht division in 1988 as a diversification because we were building oil support vessels for the Gulf Coast and were subject to the ups-and-downs of the oil business. I saw our technology and engineering skills as an underused asset. Research showed most buyers were Americans, but they were going to Europe. Our plan was simple, if we could get the American buyers, we'd have a very good business. It worked out and the market hadn't changed all that much by the time we bought it in 2000.

How long does it take to build one of these mega-yachts?

Dane: Construction is typically two to three years, but with our backlog the contracts are generally set up for delivery at around 36 to 42 months. We deliver six to eight boats a year depending on the size and complexity.

Who typically buys Trinity Yachts?

Dane: Up until the last 18 months, 75 percent of our sales were to self-made Americans like Rick Hendrick, who you might know from his NASCAR team. Recently, our boats have sold to Russians, Middle-Easterners, and a Mexican. A lot of that is due to the exchange rate, especially with the Euro. It appears as if our boats are on sale.

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