Collecting wisely at Sean Kelly Gallery, past, present and future, with Senior Partner Cecile Panzieri

Cecile Panzieri, Senior Partner
Sean Kelly, Founder
Sean Kelly Gallery

PODCASTING WAS DEVELOPED IN 2004  WHEN ADAM CURRY, FORMER MTV VIDEO JOCKEY AND DAVE WINER, CODED A PROGRAM KNOWN AS iPODDER WHICH ENABLED THEM TO DOWNLOAD INTERNET RADIO BROADCASTS TO THEIR IPODS. AS A RESULT OF THE PANDEMIC, THE NUMBER OF PODCASTS ON EVERY SUBJECT HAS MULTIPLIED EXPONENTIALLY, POPPING UP EVERY DAY, ON A VAST NUMBER OF PLATFORMS. AS OF 2019, PRE-PANDEMIC, 165 MILLION PEOPLE HAVE LISTENED TO A PODCAST WITH 90 MILLION AMERICAS LISTENING MONTHLY. THE LRFA BLOG IS CERTAIN THAT THE NUMBERS ARE EVEN MORE COMPELLING SINCE COVID.

ONE OF THE MOST THOUGHTFUL, INTELLIGENT AND INTERESTING CONTRIBUTIONS TO PODCASTS ON THE SUBJECT OF ART IS SEAN KELLY’S COLLECT WISELY. STARTED IN THE SPRING OF 2018, THE PODCAST EXPLORES COLLECTING AND CONNOISSEURSHIP IN A DIALOGUE WITH A DIVERSE GROUP OF INTERNATIONAL COLLECTORS. REFLECTING THE GALLERY’S PRINCIPLES, IT REFOCUSES THE DIALOGUE AROUND CORE VALUES THAT CENTER MORE ON ART, ARTISTS, AND A PASSION FOR COLLECTING THAN ON ART WORLD STATUS AND SHORT-TERM MONETARY INTERESTS. IN COLLECT WISELY, WE LISTEN TO THE FASCINATING STORIES OF HOW INDIVIDUALS CAME TO COLLECT ART, WHAT THEY COLLECT AND WHAT THEY WOULD OWN IF THEY COULD HAVE ANY ARTWORK IN THE WORLD. ARTICULATE AND IMPASSIONED, IT IS AN INSPIRING AND INFORMATIVE DIALOGUE REFLECTING BOTH THE EXPERT KNOWLEDGE  OF SEAN KELLY, GALLERIST, AND THE PASSION OF THE COLLECTOR.

https://www.skny.com/

 

Collect Wisely.
Sean Kelly Gallery Podcasts

THE GALLERY HAS INITIATED A WONDERFUL PODCAST, COLLECT WISELY,  THAT THE LRFA BLOG BINGED ON WHEN IT FIRST APPEARED. HOW DID THE GALLERY COME UP WITH SUCH AN ORIGINAL IDEA AND HOW WAS IT REALIZED?

I am glad that you are admitting to bingeing on it.  This series of conversations between Sean and different collectors  about collecting and connoisseurship started in 2018. It was his idea, and something that he had been thinking about a lot and felt it was necessary to speak about.  Luckily we were able to draw and rely on a diverse group of passionate art lovers who were willing to share with refreshing sincerity their respective and  unique collecting history and perspective.  This initiative resulted so far in 21 fascinating and inspiring podcasts, and has been very well-received in the press worldwide.  It has sparked conversations about our current ecosystem.   Like you, I have loved listening to them, and love what they say in turn about the ethos of the gallery.

https://podcasts.apple.com/us/podcast/collect-wisely/id1378595357

 

Marina Abramovic
The House with the Ocean View
Sean Kelly Gallery 2002

 WHAT ARE SOME OF THE EXHIBITIONS YOU HAVE HAD IN THE SPACE IN CHELSEA THAT WERE PARTICULARLY OUTSTANDING?

We were in our space in Chelsea for almost 12 years and held many great exhibitions.  That said I would like to single out Marina Abramovic’s extraordinary 12 day performance entitled “The House with Ocean View” in 2002, Joseph Kosuth’s outstanding neon installation entitled “A Propos (Reflecteur de Reflecteur) in 2004,  two remarkable installations by Antony Gormley’s entitled “Clearing”  in 2005 and “Blind Light” in 2007, Kehinde Wiley’s superb exhibition entitled “Economy of Grace” in 2008, and a beautiful installation of over 100 watercolors by Callum Innes made in response to a novel written by Irish author Colm Toibin in 2011.  

Kehinde Wiley
An Economy of Grace
Sean Kelly Gallery 2012

WHAT ARE SOME OF THE EXHIBITIONS IN THE 36th STREET HUDSON YEARS SPACE THAT ARE NOTABLE AND COULD YOU HAVE HAD THEM IN THE FORMER SPACE?

Four exhibitions come to mind: Joseph Kosuth ’s 40 year neon survey in 2015,  our first exhibition of Belgian filmmaker David Claerbout in 2016, our exhibition of monumental sculptures by Mariko Mori in 2018 and  Anthony McCall’s experiential installation “Split Second” in 2019.   The challenging  size of our 36th street’s main space created unique conditions for these artists to respond to it with ambition.  

Joseph Kosuth
A Propos (Reflecteur du Reflecteur)
Sean Kelly Gallery 2004

 WHAT ARE SOME OF YOUR PLANS FOR FUTURE EXHIBITIONS AND PROJECTS?  

I was really thrilled when we are able to return to the gallery which we had to close on March 13.  I have missed my colleagues and being there.  We devised a re-entry plan that we hope will allow us to remain open and once again a destination during this uncertain time.  This includes Joseph Kosuth’s exhibition “Existential Time” which had to be postponed due to the pandemic, to Sam Moyer’s first major outdoor sculpture project presented by the Public Art Fund which will be sited at the Doris Freedman Plaza entrance to Central Park, and to our first major and much awaited solo current exhibition of Shahzia Sikander’s work since she joined the gallery.  

Sam Moyer
Doors for Doris  Doris Freedman Plaza

 

 ARE THERE ANY PLANS TO EXPAND TO ANOTHER CITY AND/OR COUNTRY?

Two years ago we established a presence in Taipei.    Our operations there are currently on hold due to the pandemic.  Asia is a region that cannot be ignored and we hope that we will be able to resume them in the not too distant future. 

WHAT ARE YOU MOST EXCITED ABOUT FOR THE FUTURE OF THE GALLERY?  I am excited about the gallery’s continued growth and place in the art world, and to do so alongside  Sean, his adult children, Lauren and Tom, who have been part of the gallery for a number of years now.   I have known both of them for over twenty years, and have had the pleasure of mentoring them closely.  Though different, I can see how they complement one another, and are determined to being part of the gallery’s present and future.  I look forward to continuing to doing what I love and to playing an active role in the gallery’s future. 

CECILE, THANK YOU SO MUCH FOR SUCH A WONDERFUL INTERVIEW. YOUR WARMTH AND LOVE OF PEOPLE AND OF ART SHINE THROUGH EVERY WORD. MUCH APPRECIATED!

The future is now: traditions and innovations at David Zwirner with gallery partner Greg Lulay and director Veronique Ansorge

 

Isa Genzken
Paris New York
Opening at David Zwirner, Paris

OVER THE LAST DECADE, DAVID ZWIRNER HAS UNDERGONE AN UNPRECEDENTED TRANSFORMATION AND STANDS AS A MAJOR DRIVING FORCE IN REDEFINING WHAT A GALLERY PRESENTS AND HOW AUDIENCES INTERACT WITH THE ART AND EXHIBITIONS. A NEW BREED OF EXPANSIVE AND TRANSPORTING SHOWS OFFERS UNIQUE EXPERIENCES TO A WIDER , CULTURALLY ENGAGED PUBLIC WHILE ALWAYS SUPPORTING AND HONORING THEIR ARTISTS’ AMBITIOUS VISIONS.

THE LOCKDOWN AND PANDEMIC CRISIS ONLY SERVED TO FURTHER STIMULATE THEIR EFFORTS TO SUPPORT THEIR ARTISTS, THEIR GALLERIES AND OTHER SMALLER STRUGGLING GALLERIES  REACHING OUT IN NEW AND INNOVATIVE WAYS TO THEIR INTERNATIONAL PUBLIC.

William Eggleston
David Zwirner Hong Kong
Opening September 10

TODAY, THE LRFA BLOG WARMLY WELCOME BACK VERONIQUE ANSORGE, GALLERY DIRECTOR AND GREG LULAY, GALLERY PARTNER, TO SHARE THEIR ARTICULATE VISION OF DAVID ZWIRNER NOW AND IN THE FUTURE.

GREG AND VERONIQUE, ART FAIRS HAVE BECOME A DOMINANT VEHICLE TO SHOW ARTISTS. WHEN THE PANDEMIC HIT, HONG KONG ART BASEL WAS THE FIRST FAIR TO CREATE EXCLUSIVELY VIEWING ROOMS FOR ALL THE EXHIBITORS AS AN ALTERNATIVE TO BEING AT THE FAIR.

HOW DID THE GALLERIES IN GENERAL DO AND HOW SUCCESSFUL WERE THE MAJOR INTERNATIONAL GALLERIES?

GL: I think that the dominant form of physically seeing work still happens within the galleries and museums themselves. After that, comes the art fair setting.  

Since the 1970s, with the birth of Art Cologne, and on to the long-standing fairs like Art Basel, we’ve seen the landscape of art commerce change dramatically. The art world and the art fair sector of that art world has grown tremendously into a global industry. Regional art fairs are now held across the globe and are typically intended to serve the collector base of the specific country or region where they take place. Other art fairs have a much wider reach in terms of exhibiting galleries and the international patrons that visit and buy from the fair. The difference between the two types of fairs has to do with the brand behind the fairs, the destination, the time in the yearly calendar, and the longevity of the fair as an institution. As the art fair model of business took off, galleries became more reliant upon them for a large part of their annual business. In one week and in one spot you are able to interact with large numbers of new and existing clients, connect with curators, and make significant sales. Over the years we’ve found that all of that activity for each fair is precluded by digital outreach to our clients. So, there’s been a growing online component of what we do at a fair which occurs digitally even before we set foot in our booth. 

Suzan Frecon
Opening David Zwirner Gallery
September 10 – October 17, 2020

I think one of the big questions is, will the digital art fair exchange begin to replace the need for an actual art fair? 

When Art Basel Hong Kong was cancelled earlier this year due to Covid-19, all galleries had to turn solely to online presentations and interactions supported by Basel’s new online platform. Because our gallery already had developed the technology to support an online viewing room experience, we were able to do something in tandem with Art Basel’s platform. We were able to reach people who were interested in looking at art even if they couldn’t go to the fair, let alone leave their homes.

VA: I’m very happy that it was a success for the gallery. We will all have to see what is happening now based on the health crisis in the long run for the art fairs. But you do miss the interactions with clients in an art fair context, and human interaction will certainly not be able to be replaced completely.

GL: Certainly not. I think that a key component of this industry is that it is experiential and social. People who are interested in building collections and living with art love the personal connections they make with artists, curators, and art dealers. There is a social aspect of gallery openings and art fairs that will never be replaced by a purely online experience. What we have built online is something to run in tandem with what we are already doing in our physical spaces. 

Harold Ancart: Traveling Light
David Zwirner Gallery West 19th Street
Opening September 10th

WHAT ARE SOME OF THE OTHER WAYS IN WHICH YOU ARE NOW COMMUNICATING WITH CLIENTS AND ARTISTS IN LIGHT OF THE CURRENT CRISIS?

GL: I think in a time when people are forced to be at home, we all still have a need to be connected. Even this conversation that we are having now is being done virtually, where we can see each other on the screen and have a conversation. This is something we are doing on a daily basis with our artists, many of which are busy in their studios, but they need a connection and want a connection just like the rest of us.

VA: And obviously all these video conferencing apps that allow you to have meetings and interact with multiple people are very helpful both in terms of internal meetings and meetings with artists. I do feel a lot of clients also appreciate calls and ways of communicating where we see each other.

WHAT ARE YOUR PLANS TO DEVELOP YOUR ONLINE PRESENCE IN THE FUTURE?

GL: While we discussed this earlier,  I think it’s worth noting that while we have focused on this initiative for the past several years, we are only just beginning and will continue to explore what this new online platform can offer to our artists.

VA: Yes and also making it usable in a way where artists can really have control over the experience the visitor has on the site; the artist can put their artistic vision in it. 

Josh Smith
David Zwirner, New York East 69th, London, Grafton Street
Opening September 15th

DO YOU AGREE THAT THIS IS MORE AND MORE THE FUTURE OF THE GALLERY WORLD, AND THAT THE COVID-19 WAS MORE OF A CATALYST TO AN ALREADY ESTABLISHED TREND?

VA: Yes, Covid-19 is somewhat of a catalyst. As the other options are temporarily inactivated it is forcing us to accelerate our performance in the digital space. 

GL: Exactly, I think that this is obviously the way in which the world is moving, and people are becoming more and more accustomed to receiving content of all sorts online. Like we’ve said, these changes are not going to replace the essential in-person exchange or experience. But certainly in this moment when none of us can physically be with each other or walk into a gallery space, the necessity to charge ahead in some fashion has been a catalyst for this digital exchange on a larger scale. 

GL: It’s worth saying that the gallery in its 25+ years has weathered several storms, including the attacks on September 11th and Hurricane Sandy. This is a new experience for all of us, and a challenge we will overcome together, hopefully stronger as a gallery and as a world. During this uncertain time we have come together as a gallery to help those who may be struggling even more than we are. We’ve been able to share our existing technology and Online Viewing Room with galleries in New York and London who don’t have the same capabilities to present and sell artworks online. With an initiative called Platform: New York, and Platform: London, respectively, we’ve invited a group of young gallerists from those cities to select one artist from their program to feature on our online viewing room platform. We’re hosting our friends and neighboring galleries in an effort to connect them with collectors who are interested in buying art during this very challenging moment.

Platform
David Zwirner Gallery

IT HAS BEEN A GREAT PRIVILEGE TO HAVE GREG AND VERONIQUE SHARE THEIR THOUGHTFUL AND DEEPLY KNOWLEDGEABLE PERSPECTIVE ON THE DAVID ZWIRNER GALLERY PLATFORM, PHILOSOPHY AND ARTIST-CENTRIC POINT OF VIEW AND THEIR VISION OF OUR ART WORLD IN GENERAL NOW AND IN THE FUTURE.  SO MANY THANKS TO YOU BOTH!

THE LRFA BLOG WILL RESUME AFTER LABOR DAY. WE ARE LOOKING FORWARD TO A CONVERSATION WITH LAURA LESTER  AND LEARNING ABOUT HER NEW POSITION AS DIRECTOR OF GREY GALLERY, NEW YORK.

The artist-centric philosophy at the David Zwirner Gallery with Veronique Ansorge and Greg Lulay

Dan Flavin
Interior view of the entrance at 537 West 20th Street, New York,
Photo: Jason Schmidt

IN 1993, WHEN DAVID ZWIRNER OPENED HIS FIRST GALLERY, A 1600 SQUARE FOOT SPACE ON GREENE STREET IN SOHO, HE LAUNCHED WITH RADICAL EXPERIMENTAL SHOWS BY THEN EMERGING ARTISTS SUCH AS STAN DOUGLAS, JASON RHOADES, AND DIANA THATER, ALL OF WHOM HAD SOLO EXHIBITIONS AT THE GALLERY IN ITS INAUGURAL YEAR, AND ARE STILL PART OF THE GALLERY ROSTER TODAY.

Randy Kennedy, March 21, 2013, New York Times Magazine

https://www.nytimes.com/2013/03/21/t-magazine/david-zwirner-the-art-of-the-dealer.html

“ZWIRNER’S PROGRAM WAS FAIRLY RADICAL AND RIGOROUS, WITH A ROSTER OF UNDER-RECOGNIZED EXPERIMENTAL ARTISTS…HIS GALLERY WAS A LEAN OPERATION, WITH AN EMPHASIS ON WORK FROM EUROPE AND THE WEST COAST.”

The New Yorker 

TEN YEARS LATER, THE GALLERY MOVED FROM SOHO TO CHELSEA. A DECADE LATER, DAVID ZWIRNER HAS EXPANDED ITS FOOTPRINT TO INCLUDE A SPACE ON THE UPPER EAST SIDE OF MANHATTAN, A SPECTACULAR TOWNHOUSE DESIGNED BY ANNABELLE SELLDORF IN THE MAYFAIR DISTRICT IN LONDON, A GALLERY PRESENCE IN HONG KONG IN A VISIONARY BUILDING ON QUEEN’S ROAD , AND MOST RECENTLY, AN IMPECCABLE VENUE ON RUE VIEILLE DU TEMPLE IN PARIS.

WHAT REMAINS THE SAME IS THE ETHOS AND SPIRIT OF COMMITMENT TO THE ARTISTS AND TO THEIR ART. THAT GUIDING PRINCIPLE IS SHARED BY THE DIRECTORS AND PARTNERS OF THE GALLERY AND MANY OF THE FOUNDING TEAM HAVE CONTINUED WITH THE GALLERY TO THIS DAY.

John McCracken
Installation view 1997
David Zwirner Gallery, SoHo

THE LRFA BLOG IS PRIVILEGED TO CONTINUE ITS CONVERSATION WITH THE HIGHLY INTELLIGENT AND ARTICULATE VERONIQUE ANSORGE, A DIRECTOR BASED AT 19th STREET IN CHELSEA, AND DEEPLY KNOWLEDGEABLE GREG LULAY, A PARTNER OF THE GALLERY, BASED AT THEIR 20TH LOCATION.

DOES DAVID ZWIRNER HIMSELF DECIDE ON THE ARTISTS THAT THE GALLERY ADDS ON OR DO EACH OF THE DIRECTORS HAVE INPUT ON THE AESTHETIC PROFILE OF THE GALLERY?

GL: Every single Director and Partner works in conversation with David about the stable of artists we represent. This is something we are constantly looking to build upon. Ultimately, it’s David’s name on the door, but he looks to us for our insight and opinions.

VA: Yes and I feel it’s important to know that it’s very much encouraged that we share what we see out there, what we like, and discuss it with the team. We can always bring ideas to the table. 

WHAT ARE SOME OF QUALITIES THAT YOU WOULD SAY CHARACTERIZE ALL OF THE ARTISTS THE GALLERY REPRESENTS, WHETHER THEIR PLATFORM IS PAINTING, SCULPTURE, VIDEO.

VA: We consider them to be incredible talents!

GL: Yes, and one of the key cornerstones of the gallery and a key philosophy of David’s is that our artists always come first. This has been and will continue to be a guiding principle for the gallery.

VA: I think it’s interesting to look at the development of our roster over time. There are these connections between many of our artists, so much so that it seems almost like an organic process where the artists themselves influenced which other artists might join our roster.

The Estate of Anni Albers David Zwirner Gallery

GL: If you look at the gallery’s program that has continued to build since the early 1990s, there are some specific focuses within the program. There is a strength in historical Conceptual and Minimalist artists who worked within that language and became leaders of that voice, but there’s also a very strong group of figurative and abstract painters, an incredible group of photographers, sculptors and filmmakers. One of the things that I think has been true since the very beginning is that each of these artists has a singular and radical voice. Their work is challenging. They challenge audiences to rethink the way they are looking. 

Estate of Josef Albers
David Zwirner Gallery

VA: I think it is interesting to point out, as an example, a natural connection within our program. Let’s look at Josef and Anni Albers. After taking them on we then added Ruth Asawa, a dear friend and also a student of Josef Albers, and then we also started showing Paul Klee, who was also an artist and teacher at the Bauhaus. So adding artists that obviously are standalone very strong voices, they also allow us to capture a certain moment in time and understand how they influence one another and certain art historical movements. This is also certainly the case for American Minimalism. I feel some of these networks are certainly an interesting part of the program, but as Greg said, I feel that all of them are very strong, unique voices that pushed whatever medium they have their focus  in a very specific and strong way.

Ruth Asawa
Installation view at David Zwirner Gallery

GL: Of course, and I think part of the strength of these individual artists and the place they have now in art history has to do also with the connections between them, but also how radical their work is. I mean, can you imagine walking into a gallery in the early 1960s and seeing a bunch of fluorescent lamps in various colors bolted to a wall? Think about how radical that was – that concept entering into the white cube of a gallery. Dan Flavin, completely radical in his thinking, was not alone in that thinking. You can compare him to someone like Richard Serra or Ad Reinhardt, or some younger artists that came after them – think about how radical Jason Rhoades’ work was.

Marlene Dumas
Installation view, 2018
David Zwirner Gallery, NY

Or a painter like Marlene Dumas, or Luc Tuymans – their approach to painting was radical and it changed the entire landscape of European painting. Whether there were specific historical connections and influences from one artist to the next, all of our artists bring a completely new process, and incredibly personal voice to the world.

Jason Rhoades
Installation View 2014
David Zwirner Gallery, NY

IN OUR NEXT LRFA BLOG POST, VERONIQUE AND GREG WILL SHARE THE EXTRAORDINARY TECHNOLOGICAL ADVANCES THAT THE GALLERY HAS MADE, CERTAINLY STARTING SEVERAL YEARS AGO BUT PROPELLED BY THE COVID-19 PANDEMIC. DAVID ZWIRNER’S SHIFT TO A PREDOMINANTLY VIRTUAL, ONLINE WORLD, AND HIS SUPPORT OF SMALLER, STRUGGLING GALLERIES IS A LESSON FOR US ALL.

PLEASE JOIN US!

Art Market Update: Bank of America Private Bank, a three phase perspective

THE ART MARKET’S RESPONSE IN THREE PHASES

The art market tends to lag the stock market and the broader economy. Pullbacks are typified by a misalignment of buyer-seller expectations. We’ve had three major art market pullbacks in the last 30 years: the 2008–09 financial crisis, the 2001 bursting of the tech bubble (compounded by the 9/11 terrorist attacks) and the 1990–91 global recession. The two most recent pullbacks had V-shaped recoveries, while the 1990 collapse took nearly a decade to bounce back, partly due to higher interest rates. We expect the post-COVID-19 art market to avoid a steep collapse and forge a three-phased path ahead: The Bridge, The Adjustment and The Recovery.

The Bridge Phase (now through Fall). As the medical crisis wanes, local economies reopen and the world begins to spin again, we expect the art market will likely be supply-constrained until there is more economic clarity. But don’t expect deep discounts in Phase I. During the last crisis, the total value of art sold fell 40% from 2008 to 2009.* This was driven by sellers refusing to accept lower prices from bargain-hunting buyers, not price depreciation. Expect a similar phenomenon through the summer as consignors sit on the sideline awaiting economic clarity, and auction houses, art fairs and galleries shift to digital sales channels to salvage some revenue. Perhaps counterintuitively, the few works that do come to market will likely be met with surprisingly stable demand as stimulative monetary policy and a bored, quarantined collector base continues to buy. While the summer auctions will likely have thinner offerings, previously negotiated guarantees and stable demand should keep price levels stable.

The Adjustment Phase (Fall through Spring 2021). Beginning this autumn, the number of works coming to market are expected to spike sharply and outpace demand in some segments, pushing prices lower. Cash-strapped galleries in need of liquidity, distressed sellers impacted by market volatility and consignors who’ve psychologically accepted lower prices will hit the public and private market. Demand—a function of collector sentiment—will ultimately be determined by the medical reality, stock market levels and buyers’ liquidity. But we expect prices to recalibrate slightly downward during this period. Prices on the few masterpieces that trade should remain stable, but hyper-contemporary and middle market works will likely see downward pressure. Phase II is the time for bargain-hunting.

The Recovery Phase (2021 and beyond). The art market’s deflationary period should end as capital markets strengthen, the corporate profit cycle normalizes and economic sentiment rebounds. During this period, economies will begin paying for their monetary and fiscal responses to COVID-19 through inflation. This should again drive capital into art (the Fed can’t print Picassos). Primary market contemporary artists—particularly young figurative pre-crisis market darlings—will lag more established artists. Middle market galleries and museum acquisition programs will likely take years to recover, and some will close. Well-capitalized mega-galleries should emerge stronger and the art fair calendar will likely shrink. We expect virtual sales rooms, online auctions and digital channels to boom, but ultimately the art market could return to its social, tactile roots in Phase III (vaccine willing).

 

THREE BIG ART MARKET TRENDS

1. Art ecosystem adapts. The art market’s infrastructure is in the midst of an extreme retrenchment. Galleries, auction houses and museums have cut or furloughed staff and are pondering how to function in this new environment. Expect a wave of consolidation and closures—the galleries we’ve spoken to say revenue is off by 80%. The American Alliance of Museums (AAM) estimates that 30% of museums will not have the resources to reopen, and galleries tell us that business will be down 70% this year. We expect the most rapid, potent innovation cycle we’ve ever witnessed in the art market’s history. This means a more accessible, impersonal, transparent, slightly dreary, virtual art world in the near term.
2. Auction house strategy. Last year three auction houses sold themselves—Hindman, Bonhams and Sotheby’s. A battle for market share has eroded industry margins, and the age of social distancing has accelerated their move into new product areas and digital sales channels. Expect the live digital-hybrid auction model to be used for its major sales for the foreseeable future. You’ll also see a proliferation of eBay-style multiday auctions with the option to offer a buy-it-now price and significantly more lots sold via private treaty sale than under hammer. Expect creative alliances among auction houses (for example, Guardian and Christie’s in China) and with the private market (Sotheby’s Gallery Network). Finally, look for the houses to make strategic bets in fashion, retail and even financial services.
3. Rise (and fall) of digital. Social distancing has expedited the art world’s transition to digital sales channels. We first saw the digital acceleration in March as Art Basel Hong Kong launched an entirely virtual fair. Expect all art fairs to have digital sales rooms. Galleries tell us that virtual sales are 25% of live fairs. The new format creates more price transparency, which drives market efficiency and accessibility. Recent online auctions and digital art fairs have proven surprisingly effective with high sales and up to 40% of auction bids coming from new bidders. You might never see an in-person day-sale auction again. While the digital dream is now real, it is wanting; as a result, we expect the art market to transition to a hybrid digital/in-person world, once we are able.

FOUR TACTICAL CONSIDERATIONS FOR COLLECTORS

1. Consider your art as a source of liquidity. As interest rates drop and markets turn choppy, take stock of your liquidity options. More collectors hold their art on the balance sheet and use it as a strategic source of capital to redeploy into investments. And because art is not priced daily, art loans offer lower margin call risk than a typical margin loan.
2. Consignment considerations. As you think about selling art, consider the benefits and drawbacks of your current options: hybrid auction formats, private treaty sales, online-only digital sales and gallery consignment. To help manage risk for our clients, we’re building optionality into consignment agreements to provide a release valve should the medical or financial crisis intensify.
3. Planning considerations. Appraisals are expected to adjust lower, which should in turn affect planning. Certain planning techniques are more efficient when interest rates are lower. For example, the Internal Revenue Service 7520 rate is issued monthly and reflects an assumed rate of return. Since the June 2020 rate is the lowest it has ever been (0.6%) it provides an opportunity to transfer even more wealth to the next generation.
4. Gifting and philanthropy. Aside from selling, collectors have additional options for their art: give it to family members or donate it to charity. Lower values affect both of these options. While no one likes lower values, they do allow a senior generation to transfer more wealth to the next generation at a reduced transfer tax cost. Conversely, depressed values (and appraisals) may lower charitable income tax deductions for donations of art. However, the ability to deduct cash donations was increased to 100% of adjusted gross income as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which dramatically increases the deduction for cash donations to art and cultural institutions.

TO LEARN MORE ABOUT BANK OF AMERICA’S ART SERVICES, CONTACT EVAN BEARD, NATIONAL ART SERVICES EXECUTIVE, at evan.beard@bofa.com

https://www.privatebank.bankofamerica.com/articles/art-services-market-update.html

Artist pension trusts, how they work, with expert Sarah Murkett, founder of Murk & Co.

THE ARTIST’S RESALE RIGHT (ARR) IS AN INTELLECTUAL PROPERTY RIGHT THAT ENTITLES ARTISTS TO A ROYALTY PAYMENT EVERY TIME AN ORIGINAL WORK OF ART IS RESOLD BY AN AUCTION HOUSE, GALLERY OR DEALER.  IT WAS FIRST INTRODUCED INTO THE UK IN 2006. ALTHOUGH IT HAS ITS ADVANTAGES IN THEORY, IT CAN BE A BURDEN ON THE ART AND AUCTION MARKET WITH NEGATIVE EFFECTS BOTH ON THE ACCESSIBILITY OF WORKS AND ON THEIR PRICING.  OVER THE YEARS, IN THE UNITED STATES, DIFFERENT LAWMAKERS HAVE CHAMPIONED FEDERAL EFFORTS TO ESTABLISH THE RIGHT IN THE U.S. AND ARE FACED WITH THE SAME CONFLICTS.

https://itsartlaw.org/2019/07/01/its-not-that-easy-artist-resale-royalty-rights-and-the-art-act/

ANOTHER CONCEPT THAT WAS DEVELOPED AT THE TIME WAS THE ARTIST PENSION TRUST OFFERING LONG-TERM FINANCIAL SECURITY AND INTERNATIONAL EXPOSURE TO SELECT ARTISTS AROUND THE WORLD.

SARAH MURKETT, FOUNDER AND PRESIDENT OF MURK & CO., WAS  INSTRUMENTAL IN THE TECHNICAL AND AESTHETIC DEVELOPMENT OF BOTH MUTUALART AND THE ARTIST PENSION TRUST. IT PROVIDED HER WITH A PROFOUND KNOWLEDGE OF THE WORK OF MANY ARTISTS IN THE APT COLLECTION, CURATORIAL EXPERIENCE AND A SOPHISTICATED KNOWLEDGE OF A BUSINESS  BASED ON A DATABASE DIGITAL PLATFORM, ALL INVALUABLE WHENSHE CAME TO FORM HER OWN BUSINESS, MURK & CO.

THE LRFA BLOG IS HONORED TO SHARE HER EXTENSIVE KNOWLEDGE AND PROFESSIONAL HISTORY AT MUTUALART AND THE ARTIST PENSION TRUST WITH YOU TODAY.

SARAH, WELCOME BACK!

Sarah Murkett
Murk & Co installation
Work by Allan Mc Collum

TELL US ABOUT YOUR TIME AT MUTUAL ART. HOW IS THE COMPANY STRUCTURED AND WHAT IS THE SCOPE OF SERVICES IT PROVIDES? IT SEEMS TO OFFER A RATHER COMPREHENSIVE VIEW OF THE ART MARKET, AUCTION RESULTS AND APPRAISAL SERVICES AND ALSO TO REPRESENT THE SALE OF ARTWORKS FROM A BROAD RANGE OF PERIODS.

I was introduced to MutualArt through my friend Candice Madey of Stellar Projects whose ex, Ayal Brenner, was the CEO of the company.  MutualArt was looking for someone who could source secondary market material to offer to their global network of collectors.  The company was started by tech entrepreneur Moti Shniberg, who had also founded the Artist Pension Trust (APT), whose mission was to support artists through collectivized pooling of art, invested by the artists themselves into a Trust, for eventual sale, the proceeds of which were to be distributed back to the artist members.  At heart, the impetus for MutualArt was to build a base of collectors to potentially sell artworks from APT, which they boasted as being the largest collection of contemporary art in the world.  The way they devised to do this was to build a website that aggregated information about artists, including upcoming exhibitions, current news and most notably auction results. 

MutualArt article
Art Pension Trust Makes First Distribution

As with many tech companies, it was the interests of the collectors (the data), derived through the artists they followed and their behavior of the site, that was the ultimate value proposition.  They brought me on as the Director of Sales for both companies, and I was charged with building sales platforms for both MutualArt and APT, including trying to identify and optimize synergies between them.

I leveraged my network and partnered with collectors and dealers to offer individual works and larger curated sales on and off the MutualArt website.  I helped to develop original content and edited a weekly MutualArt newsletter, which would often feature APT artists. I familiarized myself with the works in the APT collection and initiated sales for the company, which ultimately lead to the first payouts to member artists.  Unfortunately, there were 5 different CEOs in the 4-years that I was there and the infrastructure and vision for the two companies never came together.

WHAT WERE THE HIGHLIGHTS OF YOUR JOB AT MUTUALART. WHAT WERE THE AREAS IN WHICH YOU CONCENTRATED AND IN WHAT WAYS DID THIS INCREASE YOUR KNOWLEDGE AND FAMILIARITY WITH THE CONTEMPORARY ART MARKET?

My favorite project that I worked on while at MutualArt was the online selling exhibition that I put together in 2014 of video art from the APT collection called, “We’ve All Got Issues”.  There was a concurrent brick and mortar manifestation at the NEWD Art Show, a short-lived artist focused fair in Bushwick, which was organized by Kate Bryan and Kibum Kim, who invited us to participate.

Sarah Murkett
We’ve All Got Issues
Video Art from the APT Collection

The inspiration for the show was the APT collection itself.  There was a lot of video in the collection and while most artwork does not readily lend itself to a screen, I thought that video by APT artists and the MutualArt selling platform, which lived on a screen, made for a natural pairing.  I spent a Xmas holiday watching every video in the collection and from that, “We’ve All Got Issues” was born featuring work by artists such as Brian Alfred, Kevin Cooley, Keren Cytter, Rico Gaston, Kate Gilmore, Annika Larsen, Kalup Linzy, David Shrigley and Mark Titchner.

Needless to say, the show was not a commercial success.  What it taught me is that no matter how broad the platform for promotion, an exhibition in and of itself is not enough of a machine to create a market for work for which there is not much of a market to begin with.  This is the hard work that the galleries that represent these genre pushing artists do every day.

HOW DID THE ARTIST PENSION TRUST WORK AND HOW WERE THE ARTISTS SELECTED?

The Artist Pension Trust story is actually quite tragic.  It was a noble undertaking started in 2004 to provide financial security for artists into their old age.  It was to be a kind of retirement plan for artists, into which the only asset that member artists needed to invest was their art. Every artist was to contribute 20 artworks over 20 years and the number of shares they had in any distributions was determined by the number of artworks they had “deposited” in the Trust.  If selected well, some of the art was bound to go up in value over a minimum 10-year hold period.  The model said that only 5% of the artists needed to do well in order for everyone to benefit in the long run.

Kalup Linzy
NEWD art fair installation
Mutual Art exhibition

I still think it is a great idea, and that this version was just poorly managed, but poorly managed it was.  Here is a link to a story outlining the saga:

https://www.theguardian.com/money/2018/mar/17/art-pension-trust-investment-legal-action-artists

After closing a big round of financing, with new investors who wanted to see profits, management decided that a selection of the best works from the collection should be sold at auction.  It was my opinion that the artworks in the collection had not really established a demand in the market such that they would do well at auction.  Additionally, I did not think that APT’s artist members, or their galleries, would be supportive of the initiative.  I believe that I lost my job over this opinion.  The great news was that the sale in New York had a very high sell-through rate, but most of the work sold at the low estimates, which was well below the artist’s retail prices.  This bore itself out, much as I had predicted with artists and their dealers up in arms, so much so that APT pulled out of the follow-up sale in London.

SARAH, THANK YOU.  SARAH IS A WEALTH OF KNOWLEDGE IN SO MANY ASPECTS OF THE BUSINESS OF ART. WE LOOK FORWARD TO A CONTINUED DIALOGUE ON THE STEPS THAT LED UP TO STARTING HER OWN COMPANY/

AND THANK YOU TO THE MANY LRFA BLOG FOLLOWERS FOR YOUR COMMENTS AND SUPPORT.

Save the Date: The Art Business Conference returns to New York on March 30, 2020

Louise Hamlin
Founder and Director
Art Business Conference
London, New York, Hong Kong

2020 DATE AND NEW VENUE ANNOUNCED FOR THE FOURTH EDITION OF THE ART BUSINESS CONFERENCE IN NEW YORK

THE ART BUSINESS CONFERENCE LAUNCHED IN LONDON IN 2014, IN NEW YORK IN 2017 AND IN SHANGHAI IN NOVEMBER 2018. ENTERING ITS SEVENTH YEAR, ITS MISSION IS SIMPLE: TO BE THE LEADING ANNUAL CONFERENCE FOR ART PROFESSIONALS INCLUDING ART ADVISORS, COLLECTORS, AUCTIONEERS, DEALERS, GALLERIES, INSURERS, SHIPPERS AND LAWYERS, OFFERING IN-DEPTH KNOWLEDGE AND GUIDANCE ON CHANGES WITHIN THE GLOBAL ART MARKET, PLUS THE LATEST UPDATES IN LEGISLATION AND TAXATION.

The Art Business Conference Networking

IN 2019, THE ART BUSINESS CONFERENCE IN NEW YORK WAS ATTENDED BY OVER 250 ART MARKET PROFESSIONALS REPRESENTING OVER 125 ART ORGANIZATIONS FROM THE UK, EUROPE, MIDDLE EAST AND USA. THE LATEST CONFERENCE WAS HELD IN LONDON IN SEPTEMBER 2019 AND WELCOMED JUST UNDER 400 ATTENDEES.  THE LRFA BLOG IS VERY MUCH LOOKING FORWARD TO THE MARCH 30th ART BUSINESS CONFERENCE IN NEW YORK AT A PERFECT LOCATION: CHRISTIE’S FLAGSHIP GALLERIES AT 20 ROCKEFELLER PLAZA (49th STREET BETWEEN 5/6th AVENUES).

https://www.theartbusinessconference.com/nyc/the-event/

 

The one-day conference for art market professionals will comprise a full day of lively panel discussions, informative presentations and Q&A’s, all in the heart of Manhattan.

The leading platform for the discussion of key issues in today’s global art market, the conference will bring together industry experts from all facets of the art world, providing a 360-degree perspective on major developments within the trade and offering delegates the opportunity to establish new contacts in the industry.

Louise Hamlin, founder & director of The Art Business Conference says, “I am delighted that the Art Business Conference will be returning to New York for the fourth year and to be partnering with Christie’s. The conference will be held in Christie’s main salesroom, the James Christie room, which is not only an iconic art world setting, but also an opportunity for us to accommodate a growth in our attendee base from across the US, UK, Europe, Asia and the Middle East. Last year over 250+ art professionals and collectors attended.”

 

IN THE NEXT LRFA BLOG, THE TOPICS AND SPEAKERS WILL BE HIGHLIGHTED. THEY COVER A WIDE RANGE OF SUBJECTS INCLUDING THE NEW ANTI-MONEY LAUNDERING DIRECTIVE, THE SCIENCE AND ECONOMICS OF COLLECTING, SUSTAINABILITY AND THE FINE ART OF RECRUiTMENT, PLUS THE LATEST UPDATES AND TRENDS IN DATA, TECHNOLOGY, AND CONSERVATION SHAPING THE ART MARKET TODAY.

Christie’s New York
Rockefeller Center

SIGN UP NOW! A NOT-TO-BE-MISSED EVENT.

To register please visit: https://artbusinessconferencenewyork2020.eventbrite.co.uk

To register interest for further press enquiries please contact:

Louise Hamlin (Director & Founder)

email: louise@artmarketminds.com

Tel: +44 (0) 7508 231 241

A profound commitment to the interests of the artist with gallery director, Maria Bueno, of Cheim & Read

Art Basel 2019
Cheim & Read

IN HIS RECENTLY PUBLISHED BOOK, BOOM, A FASCINATING AND COMPREHENSIVE COMMENTARY ON HOW THE CONTEMPORARY ART WORLD AND MARKET HAS EVOLVED, MICHAEL SHNAYERSON WRITES:

TRADITIONALLY, DEALERS LARGE AND SMALL HAD TRAVELED TO A HANDFUL OF FAIRS: FIAC IN PARIS, NEW YORK’S ARMORY SHOW, AND THE MOST ESTABLISHED FAIR, ART BASEL SWITZERLAND. WHEN ART BASEL MIAMI BEACH JOINED THE PACK IN 2002, AND FRIEZE LONDON IN 2003, THE PACE REMAINED, FOR A WHILE, MANAGEABLE. YET EACH YEAR, MORE NEW ART FAIRS SPROUTED, IN ONE COUNTRY AFTER ANOTHER…CLARE McANDREW, THE CONSULTING ART-MARKET ECONOMIST WHO NOW WORKS FOR ART BASEL, COUNTED 260 MAJOR FAIRS. WITH MORE AND MORE ART TO BE SEEN AND SOLD, DEALERS FELT THAT THEY HAD NO CHOICE BUT TO BE A PRESENCE IN AT LEAST A FEW OF THE PROLIFERATING SHOWS. IT WAS A COSTLY DECISION. 

Michael Shnayerson, BOOM, Public Affairs, New York, pp. 362-363.

Michael Shnayerson
Boom
Mad Money, Mega Dealers, and the Rise of Contemporary Art

A FEW GALLERIES ARE GETTING MORE AND MORE OF THE MARKET SHARE. MANY COLLECTORS ARE VISITING ART FAIRS AS THEIR PRIMARY SOURCE WHEN BUILDING AND ADDING TO THEIR COLLECTIONS AND FREQUENT THE GALLERIES LESS AND LESS. AT THE SAME TIME, JENNIFER FLAY, ARTISTIC DIRECTOR OF FIAC, IN AN INTERVIEW IN THIS WEEK’S FINANCIAL TIMES,  POINTS OUT THAT ART WORLD INDIVIDUALS MAY SOON NEED TO RE-EVALUATE THEIR CARBON FOOTPRINT WHICH COULD POTENTIALLY BRING THE FOCUS OF THE MARKET BACK TO REGIONAL AND LOCAL SITUATIONS.

IN THIS CLIMATE OF ECONOMICAL, SOCIAL AND ENVIRONMENTAL CONCERNS, THE RESPONSIVE ART MARKET IS UNDERGOING A TRANSFORMATION IN ITS WAY OF DOING BUSINESS.

TODAY, WE WELCOME BACK MARIA BUENO, PARTNER AT CHEIM & READ, WHO HAS OPTED TO OPEN AN UPTOWN GALLERY FOCUSED ON CONNOISSEURSHIP, THE SECONDARY MARKET AND AN UNFLAGGING COMMITMENT TO THE BEST INTERESTS OF THE ARTIST.

https://www.cheimread.com

Frieze, New York, 2018
photo taken by Brian Buckley courtesy of Cheim & Read, New York

MARIA, WHAT ART FAIRS DOES CHEIM & READ PARTICIPATE IN, AND WHY?

Art Basel and Art Basel Miami Beach. The outstanding quality of the material on view brings in people who are important to us, from curators to collectors to museum patrons. We take these fairs very seriously and our presentations reflect that effort.

WE ARE IN A CHANGING AND VOLATILE ECONOMIC CLIMATE. HOW DO YOU THINK THAT WILL IMPACT ON THE CONTEMPORARY ART MARKET?

It is hard to predict but collectors will always find the resources to acquire a work of the highest quality no matter the circumstances. We strive to source and show work of this quality level so that collectors feel comfortable and confident in what we are showing and offering them. We have worked hard to establish a loyal client base which we hope will follow us into the next chapter of the gallery’s history.

WHAT IMPACT DO YOU THINK IT WILL HAVE ON THE GALLERY SYSTEM?  WHAT ARE THE DIFFERENCES IN REPRESENTATING ARTISTS NOW AND EVEN A FEW YEARS AGO SINCE SOME DEALERS HAVE NUMEROUS GLOBAL LOCATIONS?

Dealers will need to find innovative ways to continue doing business and make sure artists have the freedom and flexibility to make their work. Today it seems like everyone is vying for “worldwide exclusive representation” – these representation wars are tiring and not necessarily in the best interest of the artists. Why not have several dealers with whom you like and respect working for you? 

Ron Gorchov
Opening exhibit September 2019
Cheim & Read
23 East 67th St, New York

WHAT ARE THE GALLERY’S PLANS FOR THE FUTURE?

Our new gallery opened on September 26th with an exhibition of historical, never before exhibited paintings by Ron Gorchov. We plan to mount 3-4 exhibitions per year, most of which will have a historical focus and examine key periods in artists’ oeuvres. Catalogues and other publications will add to our commitment to original scholarship. We also plan to participate in select art fairs. We will continue to work directly with a number of artists whom we have had long relationships with and will continue to pursue meaningful projects on their behalf. We will also concentrate on private sales in the secondary market. This work is informed by our depth of knowledge developed by decades of connoisseurship and our extensive archive.

 

Lynda Benglis
Catalina
Museum of Cycladic Art Athens, November 2019

 

WHAT DO YOU THINK IS THE IMPACT OF OUR SOPHISTICATED AND EVER DEVELOPING TECHNOLOGY ON ARTISTS’ WORK?  WHICH ARTISTS EMBRACE THESE INNOVATIONS MOST SUCCESSFULLY?

While Cheim & Read has always had a particular interest in the traditional medium of painting, technology has been helpful in executing a sculptor’s concept in more ambitious scales. Lynda Benglis for example continues to push the boundaries of this medium and uses new technology with her foundries to create incredibly intricate and detailed works on monumental scales. It’s exciting for all of us to see come to life.

Lynda Benglis at The Cycladic Museum, November 22, 2019

“Lynda Benglis: In the Realm of the Senses” opens at the Museum of Cycladic Art, Athens. The exhibition curated by Dr. David Anfam is the first solo exhibitions for Benglis in Greece, a country that has great significance for Benglis aesthetically and culturally. 

THERE ARE CERTAINLY TRENDS IN COLLECTING, MORE THAN EVER, SINCE IMAGES AND ARTWORKS ARE ACCESSIBLE BECAUSE OF THE INTERNET, INTERNATIONAL ART FAIRS, AND THE GLOBAL MARKET.  HOW DO YOU DIFFERENTIATE WHAT IS A TREND THAT WILL RECEDE ALONG WITH THE MONETARY VALUE  FROM AN ARTIST THAT WILL CONTINUALLY COMMAND A PLACE IN THE MARKET WITH ONLY SLIGHT EBBS AND FLOWS ?

In most instances, you can only know these things with time. For us, we continue to show and support artists we believe in, no matter the trends. It is this steadfast commitment to a particular vision that I think differentiates us from other dealers. 

IN OUR NEXT LRFA BLOG, MARIA WILL SHARE HER PERSPECTIVE ON TRENDS IN THE ART MARKET AND THE CONTINUED FOCUS AND FUTURE OF CHEIM & READ.

PLEASE JOIN US!

The importance of the new technology in the art market as analyzed in the Bank of America Private Bank survey

THE DIGITAL REVOLUTION HAS DRASTICALLY AFFECTED MANY INDUSTRIES, CHANGING THE WAY WE COMMUNICATE, ACQUIRE AND SELL PRODUCT. ONE OF THE INDUSTRIES THAT HAS, SURPRISINGLY, BEEN IMPACTED LESS THAN ONE WOULD THINK, GIVEN ITS BASICALLY VISUAl NATURE, IS THE ART MARKET AS SEEN IN THE RECENT PIERCINGLY INFORMATIVE AND COMPREHENSIVE BANK OF AMERICA PRIVATE BANK REPORT.

• ART AND TECHNOLOGY
• The art market remains one of the few industries still largely undisrupted by technology. We’re seeing innovation, but it’s still at the fringes. While online transactions are increasing, the growth of online sales has slowed, growing at 9.8% in 2018 versus 12% in 2017.

• Internet-native art companies are trying to help. In June, private equity firm Cove Hill made an investment in online marketplace LiveAuctioneers, aiming to accelerate online sales growth for their auction house partners, while Invaluable has made it easier to source and buy lower value items. Major galleries like Gagosian and David Zwirner launched digital sales channels, but the digital revolution still eludes the art world.
• On the transparency front, Christie’s became the first major auction house to record sales via Blockchain with the sale of the Ebsworth collection in November. At the request of the seller, Christie’s partnered with Blockchain-secured registry Artory to record its transactions. It’s an interesting development, but we’re a long way from Blockchain becoming industry standard.
• The most significant art world technology has been the rise of Instagram. Artists market themselves, museums announce exhibits, dealers initiate sales, and collectors tout their purchases through the platform. In 2017, when the “Untitled” Basquiat sold at Sotheby’s for over $110 million, Yusaku Maezawa posted his photo on Instagram to let the world know of his acquisition. Younger collectors, artists, dealers and auction specialists are increasingly using Instagram to enhance their personal and professional brands. Expect the new status loop to fuel a herd mentality for some artists and more price volatility. So collector beware.

 

• AS AN ASIDE, ARTISTS ARE CREATING WORKS THAT REPRODUCE EFFECTIVELY ON INSTAGRAM IN TERMS OF COLOR, DIMENSIONALITY AND SURFACE WITH THEIR AESTHETIC PRESENCE IN PERSON SOMETIMES TAKING A BACK SEAT.

 

• ART LENDING

  Our art lending business grew by 20% year-over-year, as you all continue to unlock capital from your art to build hotels, buy sports franchises, expand companies and even buy more art, just to name a few. The four most common situations we’re seeing are:

  1. The balance sheet arbitrage: With historically low interest rates, more of you are unlocking capital from your art to redeploy into higher-return areas of your financial life, like private equity.

  2. Working capital line: During the current economic expansion, more of you are using art loans to fund the growth of your privately held companies.

  3. Monetizing a collection: The passage of the 2017 Tax Cuts and Jobs Act eliminated the 1031 Like-Kind Exchange, making it more expensive to sell art. Instead of selling art and dealing with paying the 28% federal tax + 3% health care surtax + state taxes + sales commission, many of you have chosen to leverage your art via an art line to generate liquidity.

  4. Guarantees: We’re seeing more of you using art facilities to back guarantees at auction (but we advise caution).

  We estimate that total U.S. art loan commitments stand at $16 billion. We’re proud to have a significant portion of those loans, and we remain staunchly committed to the space. Given our forecast of continued low interest rates, stratified wealth creation, and expansion of the collector base, we expect continued growth in the space.

  Top five artists we lend against, by value:

  1. Willem de Kooning

  2. Andy Warhol
  3. Constantin Brancusi

  4. Paul Cezanne

  5. Roy Lichtenstein

  AT THE CLOSE OF THE SURVEY, BANK OF AMERICA PRIVATE BANK TARGETS THE OPPORTUNITY ZONES AND THE EFFECT OF CAPITAL GAINS TAX INCREASES AND THE REPEAL OF THE SECTION 1031 LIKE-KIND EXCHANGES PROVISION. THIS IS INVALUABLE INFORMATION FOR ANY ONE INTERESTED IN THE ART MARKET: DEALERS, GALLERISTS, AUCTION SPECIALISTS, AND MOST OF ALL COLLECTORS.

  PLEASE JOIN US!

   

Amber Berger, the profile of a young collector

AMBER BERGER, CO-FOUNDER OF SALTHAUS, AND HER HUSBAND CAME TO NEW YORK TO ENJOY THE ENERGY AND OPPORTUNITY THAT THE CITY CAN OFFER. ONE OF ITS GREAT DELIGHTS IS THE WEALTH OF ART THAT IS AVAILABLE TO VIEW AND TO ENJOY, ON EVERY LEVEL, FROM MASTERPIECES IN OUR NUMEROUS MUSEUMS TO ART FAIRS AND STREET FAIRS, ESTABLISHED GALLERIES AND EMERGING ONES.  THE LRFA BLOG IS ALWAYS INTERESTED IN UNDERSTANDING WHAT AND WHY PEOPLE COLLECT AND AMBER HAS OFFERED TO SHARE HER PERSPECTIVE AND POINT OF VIEW IN TODAY’S LRFA BLOG.

AMBER, WELCOME BACK!

WHEN DID YOU FIRST DEVELOP AN INTEREST IN ART? DID YOU VISIT MUSEUMS AND/OR GALLERIES GROWING UP, WITH YOUR PARENTS? WERE THEY COLLECTORS?

My mother is a fine artist so art has been a big part of my life since I was young. I grew up biking with her around the neighborhood and watching her paint nature scenes. We always went to museums in our own city as well as any city we visited.  I loved learning about the different techniques and have always admired oil on canvas, the texture just speaks to me.

Daniel Dens

WHAT PROMPTED YOUR FIRST PURCHASE AND WHAT WAS IT?

My husband and I bought an apartment together before we got married which began our personal interest in art. Living in the NYC there are so many incredible galleries, museums and art fairs to attend that helped us get a sense of what style we liked. Walking on the city streets, street art was our first love.  My husband could not get this one artist out of his mind that he saw in Soho on the street years ago so when we were ready to purchase art for our apartment we tracked him down, named Daniel Dens, and went to his loft in Williamsburg. It was a memorable experience going through rolls of art in his studio until we found the perfect one. It was a blue painting of Bridget Bardot with bright yellow writing on top that said “Merci beau-coup, Ciao I’ll call you later.”

WHO ARE THE OTHER ARTISTS YOU COLLECT?

Craig Allen, Julien Vos Andres, Jonas Sunset, Jonathan Robles, Curtis Kulig, Tanc, Bob Taber, Ole Aakjaer

Craig Allen

HOW IMPORTANT IS THE POTENTIAL INVESTMENT VALUE OF A WORK TO YOU AND YOUR HUSBAND?

We mainly go with our intuition, interested in pieces that move us and evoke a sense of emotion. Of course, we check with friends who are our advisors to make sure we are not making a poor investment but as young collectors we are not as concerned about the potential investment if it made us feel something.

HOW WOULD YOU CHARACTERIZE THE STYLE OR GENRE OF WORK THAT YOU HAVE ACQUIRED SO FAR AND WHAT DIRECTION ARE YOUR PURCHASES TAKING?

We love emerging artists usually in modern art and landscape photography. We have been into street art since the beginning and it has been amazing to watch how much that market has exploded over the last 10+ years.

Tanc

DO YOU AND YOUR HUSBAND AGREE ON YOUR PURCHASES? DO YOU NEED TO OR IS IT COLLECTING DRIVEN BY ONE OF YOU MORE THAN ANOTHER?

My husband and I luckily have very similar tastes so it has not been an issue to date. He actually has a great eye for art and we bounce ideas off each other all the time. We never set out to purchase art, it usually just happens when we come across a piece we want to bring into our home.

HOW DO YOU FEEL THAT YOUR KNOWLEDGE AND LOVE OF THE CRAFT OF JEWELRY HAS INFLUENCED YOUR TASTE IN ART?

Both industries involve craftsmanship so I truly treasure the fine details and understand that even when something may appear easy and simple, it is usually just the opposite.

WHO ARE SOME OF THE ESTABLISHED ARTISTS THAT YOU PARTICULARLY ADMIRE AND WISH YOU COULD COLLECT?

I love color so Jackson Pollack always brightens my day and butterflies are symbolic for my family so I have a natural soft spot for Damien Hirst. As for more recent artist I have been watching RETNA for years and still kick myself for not purchasing it years ago when he first came on the scene.

Curtis Kulig

DO YOU INTEND TO CONCENTRATE ON EMERGING ARTISTS AND HAVE THE FUN OF SEEING WHICH OF THE ARTISTS YOU’VE PICKED BECOME ESTABLISHED?

Yes I think that is my passion. We love watching people rise into stars so tracking the artists we have purchased or admire and watching where they land is a thrill.

THE THRILL OF THE CHASE AND OF THE HUNT AND THE REWARD OF HAVING A GOOD EYE ARE INTEGRAL TO THE HEART AND MIND OF EVERY COLLECTOR WITH WHOM I SPEAK. IT IS GREAT THAT YOU AND YOUR HUSBAND HAVE THIS SHARED PASSION AND CAN EXPLORE THE ART MARKET, GALLERIES AND MUSEUMS BOTH HERE IN NEW YORK AND WHEN YOU TRAVEL.

IN OUR NEXT LRFA BLOG POST, THE LRFA BLOG WILL FEATURE SALTHAUS, THE REMARKABLE HALOTHERAPY CENTER THAT AMBER FOUNDED JUST OVER A YEAR AGO. IT IS AN OASIS OF WELL-BEING AND THOUGHTFULLY DESIGNED, IMPECCABLY DETAILED AND AN UNEXPECTEDLY WONDERFUL EXPERIENCE. I WENT WHEN IT OPENED JUST AS A SIGN OF SUPPORT AND I WAS ASTONISHED AT HOW EFFECTIVE IT IS AND HOW RELAXING AND SEDUCTIVE AN EXPERIENCE!

https://www.salthausny.com/

UNTIL THEN!

 

The future at Sotheby’s

AS  A SURPRISING CODA TO THE EXCEPTIONALLY INFORMATIVE INTERVIEW WITH COURTNEY KREMERS, SENIOR VP AND CONTEMPORARY ART SPECIALIST AT SOTHEBY’S, THIS NEWS HAS SET THE ART WORLD ABUZZ IN THE LAST FEW DAYS.  SOTHEBY’S HAS DECIDED TO ACCEPT AN OFFER BY FRENCH TELECOM AND MEDIA BILLIONAIRE PATRICK DRAHI AND WILL FORMALLY BE A PRIVATELY HELD COMPANY, AS ARE CHRISTIE’S AND PHILLIPS, IN THE NEAR FUTURE. THAT WILL CERTAINLY DISRUPT THE LANDSCAPE OF THE HIGHLY COMPETITIVE AUCTION WORLD!

IN THEIR OWN WORDS…

SOTHEBY’S PRESS RELEASE JUNE 17, 2019

Sotheby’s (NYSE: BID) today announced that it has signed a definitive merger agreement to be acquired by BidFair USA, an entity wholly owned by media and telecom entrepreneur as well as art collector, Patrick Drahi. Under the terms of the agreement, which was approved by Sotheby’s Board of Directors, shareholders, including employee shareholders, will receive $57.00 in cash per share of Sotheby’s common stock in a transaction with an enterprise value of $3.7 billion. The offer price represents a premium of 61% to Sotheby’s closing price on June 14, 2019, and a 56.3% premium to the company’s 30 trading-day volume weighted average share price. The transaction would result in Sotheby’s returning to private ownership after 31 years as a public company traded on the New York Stock Exchange.

Tad Smith, Sotheby’s CEO, said, “Patrick Drahi is one of the most well-regarded entrepreneurs in the world, and on behalf of everyone at Sotheby’s, I want to welcome him to the family. Known for his commitment to innovation and ingenuity, Patrick founded and leads some of the most successful telecommunications, media and digital companies in the world. He has a long-term view and shares our brand vision for great client service and employing innovation to enhance the value of the company for clients and employees. This acquisition will provide Sotheby’s with the opportunity to accelerate the successful program of growth initiatives of the past several years in a more flexible private environment. It positions us very well for our future and I strongly believe that the company will be in excellent hands for decades to come with Patrick as our owner.”

Domenico De Sole, Chairman of Sotheby’s Board of Directors, said, “Following a comprehensive review, the Board enthusiastically supports Mr. Drahi’s offer, which delivers a significant premium to market for our shareholders. After more than 30 years as a public company, the time is right for Sotheby’s to return to private ownership to continue on a path of growth and success.” 2 “I am honored that the Board of Sotheby’s has decided to recommend my offer,” commented Patrick Drahi. “Sotheby’s is one of the most elegant and aspirational brands in the world. As a longtime client and lifetime admirer of the company, I am acquiring Sotheby’s together with my family. We thank Domenico and the rest of the Sotheby’s Board for its support and look forward to getting started with Tad and the wonderful members of his team to define our future.”

The closing of the deal is subject to customary conditions, including regulatory clearance and shareholder approvals, but is not subject to the availability of financing. The transaction is expected to close in the fourth quarter of 2019 following shareholder approval.

FROM THE OFFICE OF PATRICK DRAHI

PRESS RELEASE ACQUISITION OF SOTHEBY’S JUNE 17, 2019

I am very honored that the Board of Sotheby’s has decided to recommend my offer.

With my family, we are very enthusiastic to build together with its current management
and their teams the future of Sotheby’s, a fascinating and multi-secular company with such a celebrated history of uniting people all over the world through culture and arts.

For my entire life, I have been passionate about this industry and I believe the opportunities and growth potential are significant for Sotheby’s.

I am making this investment for my family, through my personal holding, with a very long-term perspective. There is no capital link with Altice Europe or Altice USA.

As the future owner, I have full confidence in Sotheby’s management, and hence do not anticipate any change to the Company’s strategy. Management and their exceptional teams and talent around the world will continue to operate with my full support.

This investment will further demonstrate the anchoring of my family in the United States, a country where we have been very welcomed since the successful acquisitions of Suddenlink in 2015, Cablevision in 2016 and just recently Cheddar.

The telecom and media industries will keep being my main focus where I remain 100% committed to our businesses and to our continued growth. I will of course keep leading the management team in the development and growth of Altice Europe, as well as remain Chairman of the Board of Altice USA to support Dexter and his team who are doing a great job.

The acquisition of Sotheby’s will be funded by financings arranged and underwritten by BNP Paribas as well as by equity provided from my own funds. To help fund this transaction, I do not intend to sell any shares in Altice Europe NV; my intention is to monetize a small position in Altice USA up to $400 million by the end of the year. Due to Altice USA’s share repurchase program, the total economic stake of my holdings in Altice USA has increased over the last 12 months from approximately 34% to 38 %.