Butler had a non-competition contract with Whittaker for two years, so his boat building was limited to the smaller ones for which Whittaker hadn't bought the rights. Butler built a marina in Oxnard, California, and founded Catalina Yachts. His first new product was the trailerable Catalina with a movable keel, and he continued to build the smaller boats, such as the
Coronado 15, the Omega, the
Super Satellite, and the Drifter. Butler's employee and right-hand man, Beattie says, "We wanted to change the name of
the Coronado 15 to make it obvious the boat wasn't built by Coronado Yachts, but couldn't because the class association wouldn't let us". Shortly after its founding, Catalina Yachts acquired the manufacturing rights to the Victory 21, and later resumed its production selling the Victory as a Capri Victory 21. By 1977 Butler had designed and produced three more models: the Catalina 25, Catalina 27, and the Catalina 30. In 1978 Catalina developed the
Catalina 38 based on molds for a
Sparkman & Stephens racing design purchased from the bankrupt Yankee Yacht Company. Butler redesigned the interior, moved the rudder, and gave it a "Catalina deck", a taller mast, and a shorter boom. == The Capri, Morgan, Prindle, Islander, and Pearson years ==