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Skates pp.11 13

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Skates pp.11 13

  1. 1. 13 November 2013 Art Collection Management sothebysinstitute.com
  2. 2.  I.    COLLECTION BUILDING II.ESTABLISHING THE SCOPE AND VALUE OF A COLLECTION               A.  INVENTORY MANAGEMENT               B.  VALUATION III.COLLECTION MAINTANENCE AND HOLDING COSTS               A.  INSURANCE               B.  SHIPPING, HANDLING, INSTALLATION               C.  CONSERVATION IV.   THE PUBLIC AND PRIVATE WORTH OF COLLECTIONS                A. SHARING COLLECTIONS (DISPLAY, LOANS, PUBLISHING)               B. ART INVESTING AND FINANCING v.   PARTING FROM COLLECTIONS                A.  DE- ACCESSIONING, GIFTING, ESTATE PLANNING sothebysinstitute.com 2
  3. 3. Collecting Objectives • • • • • • • Personal Vision Conceptual Theme Vertical Collecting (Buying in Depth) Horizontal Collecting Crossover Collecting “The Very Best” Medium
  4. 4. Collecting Sources • • • • • At Auction Dealers Artist’s Studio Online Via Agent Due Diligence
  5. 5. Collection Management Systems (CMS) • Software Artsystems/Gallery Pro ArtBase The Museum System Filemaker Pro (My Art Collection) vs. • “The Cloud” iCollect/CollectorSystems (Sotheby’s Official Client CMS)
  6. 6. Art Detail www.sothebysinstitute.com 6
  7. 7. My Art Collection Art List
  8. 8. Valuation Valuation v. Appraising What Kind of Value? Valuation Factors Authenticity Quality Rarity Condition Provenance Publications and Exhibition
  9. 9. Insurance • Art Insurance • Explosion of art market = Explosion of insurance business • Premium revenues have increased by 30% in last 5 years • U.S. is fastest-growing market; Brazil • Increased values also mean increased liability
  10. 10. Why Insure? DESTRUCTION Jackson Pollock, Drips on Black partially destroyed in Corral Canyon Fire 2007
  11. 11. Why Insure? DAMAGE PARTIAL LOSS Picasso’s $138 million La Reve – post elbow
  12. 12. Issues for Insurer At-Risk Addresses: Florida
  13. 13. Issues for Insurer: HOTSPOTS Momart Warehouse Fire, London, 2004
  14. 14. How much to insure for? Richard Prince, Man-Crazy Nurse No.2 sold for $7,433,000 at Christies, May 2008 2003: Nurse painting purchased for $100,000 2006: Same Nurse painting valued at $250,000 New buyers from Russia, Middle East and Asia concentrate on artists with momentum
  15. 15. Title Insurance When is title not clear? Theft, Liens, Divorce Provenance Gap Reassure Buyer Muddy Ownership .Note: most reputable dealers guarantee clear title and auction houses offer warranty • Suffland Holdings v. Gagosian Gallery (Mark Tansey) 2010 – Consignor forgot work had been partially gifted to Met when signed representation of warranty to title
  16. 16. Shipping International Freight • 9/11 Commission Act of 2007 – TSA screens 100% cargo on passenger aircraft (some shipping companies are Cargo Screening Facilities)
  17. 17. Shipping Mitigate Risk • Reputable Art Handlers → ICEFAT (International Convention of Exhibition Fine Art Transporters) www.icefat.org • Before anything is shipped: → Condition Report with Images • Correctly Packed: Crate, Travel Frame, Conservation→ Grade Soft Packing Materials • Most Direct Route Possible
  18. 18. Shipping Road Freight − − − − − − Air-Ride Suspension; Humidity, Temperature Control Security Tracking Alarm Consolidated Shipment? → LOFO (Last On, First Off) Is Someone with Artwork At All Times? Can Art Be Unloaded in Building? By Courier Delivery − Must be supervised − Signature constitutes owner’s approval of arrival condition − Conservator should be on hand for valuable and vulnerable pieces
  19. 19. Shipping Customs Generally: Fine Art is Duty Free → But what is “Fine Art”? • “executed entirely by hand” -- YES • Antiques over 100 years old – YES • Disassembled “light art” – NO! (EU) → Haunch of Venison Case (2010) = VAT 20% instead of 5% + Customs » Viola and Flavin works are “wall lighting” and “fixtures”
  20. 20. INSTALLATION
  21. 21. INSTALLATION • Does it fit?? • Avoid Direct Sunlight – Ultraviolet radiation (cumulative damage cannot be reversed) − solar shades − UV filters/Glazing − Rotate works • Location (Radiators, Fireplaces, Under Sprinkler Systems, Near Heaters) • Humidity fluctuations (optimal: stabilized between 40-60%) − Beware of spotlights (heat) • Sculpture and Objects: consider plinths, display cases, bases and mounts
  22. 22. Conservation Only 5% of the world‘s artworks will survive the next 100 years!
  23. 23. Conservation DAMAGE
  24. 24. Conservation INHERENT VICE
  25. 25. Conservation CLIMATE CONTROL Hygrothermograph
  26. 26. SHARING COLLECTIONS Don and Mera Rubell
  27. 27. SHARING COLLECTIONS • Exhibition Loans • • • • • • • • • Duration?/How many venues? Security?/Climate control? Publication? Insurance? Costs? Courier? Replacement work? Immunity from Seizure? UCC-1
  28. 28. SHARING COLLECTIONS Foundations Rubell Family Collection/Contemporary Art Foundation
  29. 29. PARTING WITH COLLECTIONS DE-ACCESSION No more room/doesn’t fit 27 Rue de Fleurus, Paris
  30. 30. PARTING WITH COLLECTIONS • Tired of the Artwork/Change of Taste • Raise money to buy more art • No more room/doesn’t fit • Approaching end of life/priorities shifting
  31. 31. PARTING WITH COLLECTIONS DE-ACCESSIONING: SELLING • Auction - open, public (not discreet), transparent, but all at once can be a risk • Private Sales − Dealer – or not − Conflict? Selling • For multiple pieces: De-accession Plan − Analyze Each Market Sector − Don’t Flood the Market
  32. 32. PARTING WITH COLLECTIONS ESTATE PLANNING GOALS 1.Respect collector’s wishes vis-àvis collection 2.Reduce tax burden on estate
  33. 33. PARTING WITH COLLECTIONS ESTATE PLANNING: GIFT/BEQUEST DONATE WORKS TO CHARITIBLE INSTITUTIONS Dorothy and Herbert Vogel National Gallery of Art Washington, DC (Collectors Deduct FMV)
  34. 34. PARTING WITH COLLECTIONS “BARGAIN SALE” Sammlung Berggruen Heinz Berggruen Sold works to Berlin’s State Museums for $129 million, 1/10 market value
  35. 35. PARTING WITH COLLECTIONS “BARGAIN SALE” = Sell Works to Museum for Reduced Price •Cash strapped museums acquire desirable works •Collector gets deduction + funds to enjoy or use to defray estate costs
  36. 36. QUESTIONS? Art Collection Management sothebysinstitute.com

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