1. Porterhouse college Presentation
jeongae im
erin kornfeld
julia martin
dana marzullo
michael nabors
Presented to Fulfil Requirements for
Sotheby’s Institute of Art – London
MAAB Programme
Group 8
06 June 2006
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bedford square associates, ltd.
fine arts consultants
Valuation Project for the Committee of Fellows
of Porterhouse College
Professor Robert Child
Dr. David Bellingham
Dr. Derrick Chong
Mr. Jeremy Eckstein
Dr. Henry Lydiate
Dr. Catherine Morel
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Introductions
Part I – our valuation report: methodologies and
structure
Dana Marzullo – director of valuation
Part II – legal and ethical concerns
JEongae im – staff counsel
Part iii – highlights of the porterhouse collections
Erin kornfeld, phd – senior art historian
Part iv – financial concerns
michael nabors – chief financial officer
Part v – our marketing proposal
Julia martin – director of marketing
Concluding remarks / q&a
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Part I – our valuation report: methodologies and
structure
Dana Marzullo – director of valuation
• BSA are experts in the field of valuation
– exclusive access to unique art industry databases
– expert knowledge
– most up-to-date and accurate information
• BSA assisted Porterhouse College in the previous
valuation in 1999.
• BSA would like to thank Porterhouse College once
again in considering our firm for this valuation project
• our research and findings
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The Process
1) Analysis of the collection and allocation
2) Cross-checked past auction data from
similar objects with the same size, time
period, and subject matter or design
3) Adjusted previous valuations for inflation
4) Research tools included Artnet,
Invaluable, Artprice, Artfact, and past
auction catalogues from Sotheby’s and
Christie’s
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Researching the art market
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5) We then compared each individual artist’s
market performance since 1999 using Art
Market Research to the prices we
retrieved from various art industry
databases
6) Cross checked our values with current
sales at Christie’s and Sotheby’s and with
certain art galleries in London in which
we have a personal connection with due
to our many years working in the
industry
The Process (Continued)
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Findings
• BSA wants you to know that we were very
conservative in our estimates.
• We highly recommend that you have your insurance
values adjusted.
• According to Hiscox, you should insure your
artwork for double its value.
• Some works that we have come across are highly
valuable, which we have indicated in our object
reports, but under certain bequest terms cannot be
sold. In such cases, BSA recommends loaning some of
these works to various museums in the United
Kingdom in order to avoid paying high insurance
premiums.
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Part II – legal and ethical concerns
JEongae im – staff counsel
Bequests and Gifts
Droit de suite
Provenance
Conservation
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Bequests and Gifts
Some works valued by
our firm cannot be
sold due to legal
restrictions set forth
in the original bequests
Francis bacon, Study
for a portrait (1953)
Donated in perpetuity
to porterhouse college
in 1954 by rodrigo
moynihan
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Droit de suite
From April 2006 The Resale Royalty Right is applied
to the sales of art in UK
• From €1,000 to €50,000 : 4%
• From €50,000.01 to €200,000 : 3%
• From €200,000.01 to €350,000 : 1%
• From €350,000.01 to €500,000 : 0.5%
• Exceeding €500,000 : 0.25%
• Only applies to living artists and their estates for a period of 70
years after their death
• Collected by dealer from buyer at point of sale, therefore impact
on sales is minimal except for works of high value
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David Hockney, The Most Beautiful Boy in the
WOrld
David hockney is still alive
if sold today for our
valuation of £700,000, the
droit de suite would be in
effect
Buyer would be responsible
for an additional £1750 on
top of vat & buyer’s premium
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Provenance
Not only important regarding the sale of pieces –
the reputation/integrity of the college is at stake
– Bad or undocumented provenance is a deterrent
to sale
– Issues of nazi war loot and grave/tomb robbing
of antiquities
– Needs to be firmly established before sale can be
fully realized
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joachim wtewael
The Holy Family with Saints John and Elizabeth and Angels’
(1603)
Provenance is not clear
May be Nazi war loot
Acquired under questionable
circumstances in 1996 from
now-missing Russian collector
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Conservation
• Close examination of the objects throughout the
collection raises some ethical problems regarding
conservation
• It is necessary to include background information on the
object
– condition recorded with details of materials
– any past conservation activities
• most of the Furniture and antiquity Collections have a
lack of information that would aid in
conservation/restoration
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A Set of Six Wool and Silk
Mortlake Tapestries, c. 1680
• The condition of the
object is poor
• The details of materials
used in this item’s
conservation are
needed / professional
restoration is merited
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Part iii – highlights of the porterhouse
collections
Erin kornfeld, phd – senior art historian
Old masters
post war and contemporary art
chinese collection
English furniture
music
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Old masters
OLD MASTERS 100 INDEX: 1999-2005
(Index: Jan-99=100)
0
20
40
60
80
100
120
Jan-99
M
ay-99
Sep-99
Jan-00
M
ay-00
Sep-00
Jan-01
M
ay-01
Sep-01
Jan-02
M
ay-02
Sep-02
Jan-03
M
ay-03
Sep-03
Jan-04
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ay-04
Sep-04
Jan-05
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ay-05
Sep-05
IndexValue
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Canaletto, Venice, the Grand Canal, Looking
North-East from Palazzo Balbi to the Rialto
Bridge
On 7 July 2005,
this piece sold for
£18,600,000 in the
Sotheby’s London –
Old Master Paintings
Evening Sale
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• This masterpiece by Canaletto
has increased in value 1814%
since 1999
• Original Value: £450,000
• Adjusted Valuation: £522,396.70
• Current Value: £10,000,000
Canaletto
A View in Venice from the Punta Della Dogana Towards San Giorgio
Maggiore
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Giovanni Battista Tiepolo, Saint John the Baptist
• Tiepolo’s work has increased
in value 264% since 1999
• Original Value: £130,000
• Adjusted Value: £150,915
• Current Value: £550,000
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Frank Auerbach, Head of E.O.W.
(1957)
• Frank Auerbach’s Head of
E.O.W. has increased in
value 762% since 1999
• Original Value: £20,000
• Adjusted Value: £23,213
• Current Value: £400,000
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Robert Rauschenberg, Untitled
(1975)
• This work by Rauschenberg
has increased in value 331%
since 1999
• Original Value £140,000
• Adjusted Value £162,523.42
• Current Value £700,000
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David Hockney, The Most Beautiful
Boy in the World (1961)
• David Hockney’s work has
increased in value 141%
since 1999
• Original Value: £250,000
• Adjusted Value: £290,220.39
• Current Value: £700,000
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Archaic Bronze Fang Fu from the early
western Zhou dynasty (1040 – 771 BC)
• This Rare Chinese antiquity
has increased in value
257% since 1999.
• Original Value: £70,000
• Adjusted Value: £81,250
• Current Value: £250,000
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Pair of Carved Giltwood
Armchairs, George II, c. 1735
• THIS Pair of ENGLISH Carved
chairs has increased in
value 14% since 1999.
• Original Value: £300,000
• Adjusted Value: £348,204
• Current Value: £400,000
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Music Manuscripts by Henry
Purcell
• These treasures from one
of Great Britain’s most
famous baroque
composerhave increased
in value 43% since 1999.
• Original value: £300,000
• Adjusted Value: £348,202
• Current Value: £500,000
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Part iv – financial concerns
michael nabors – chief financial officer
The Numbers
Role of agency
Future concerns
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Valuation results
1999 Valuation
1999 Valuation
Adjusted for Inflation
2006 Valuation
%Change
(Nominal
Terms)
% Change
(Real Terms)
Music MSS by Henry Purcell £ 300,000 £ 348,202 £ 500,000 66.67% 43.59%
The Library of Sir Pearl Kopper 350,000 406,238 1,000,000 185.71% 146.16%
The Beranger Donation / Ecole de Paris Collection 633,000 734,710 829,000 30.96% 12.83%
The Dean Walter Hussey / Charles Kearley Collections 447,000 518,824 854,000 91.05% 64.60%
The Porterhouse College Art Collection 1,463,000 1,698,075 3,867,000 164.32% 127.73%
Old Master Paintings 1,662,500 1,929,631 11,720,000 604.96% 507.37%
English Furniture and Furnishings 1,080,500 1,254,115 1,283,000 18.74% 2.30%
Continental Furniture 927,500 1,076,678 1,247,500 34.50% 15.87%
The Chinese Collection 692,000 803,191 1,025,000 48.12% 27.62%
Kunsthammer / Works of Art 909,000 1,055,072 1,275,500 40.32% 20.89%
£ 8,464,500 £ 9,824,736 £ 23,601,000 178.82% 140.22%
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2006 Valuation analysis By Collection
Total Valuation: £23,701,000
The Porterhouse
College Art
Collection
£3,867,000
17%
Old Master Paintings
£11,720,000
50%
The Dean Walter Hussey
and Charles Kearley
Collections
£854,000
4%
The Beranger
Donation / Ecole de
Paris Collection
£829,000
3%
The Library of Sir Pearl
KoppeR
£1,000,000
4%
Music MSS by Henry
Purcell
£500,000
2%
The Porterhouse
Collection:
Kunsthammer and
Works of Art
£1,275,500
5%
The Chinese Collection
£1,125,000
5%
Continental Furniture
£1,247,500
5%
English Furniture and
Furnishings
£1,283,000
5%
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KEY TO CATEGORIES: A-Music MSS by Henry Purcell; B-The Library of Sir Pearl Kopper;
C-The Beranger Donation / Ecole de Paris Collection; D-The Dean Walter Hussey and Charles Kearley
Collections; E-The Porterhouse College Art Collection; F-Old Master Paintings;
G-English Furniture and Furnishings; H-Continental Furniture; J-The Chinese Collection;
K-The Porterhouse Collection: Kunsthammer and Works of Art
Porterhouse College Valuation Comparison 1999-2006
(Accounting for Inflation - Real Terms)
£-
£5,000,000
£10,000,000
£15,000,000
£20,000,000
£25,000,000
0.00%
100.00%
200.00%
300.00%
400.00%
500.00%
600.00%
1999 Valuation, Real Terms 2006 Valuation Percentage Change 1999-2006
1999 Valuatio n, Real Terms £348,202 £406,238 £734,710 £518,824 £1,698,075 £1,929,631 £1,254,115 £1,076,678 £803,191 £1,159,533 £9,929,197
2006 Valuatio n £500,000 £1,000,000 £829,000 £854,000 £3,867,000 £11,720,000 £1,283,000 £1,247,500 £1,125,000 £1,275,500 £23,701,000
P ercentage Change 1999-2006 43.59% 146.16% 12.83% 64.60% 127.73% 507.37% 2.30% 15.87% 40.07% 10.00% 138.70%
A B C D E F G H J K TOTAL
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Valuation results
Sans canaletto
1999 Valuation
1999 Valuation
Adjusted for Inflation
2006 Valuation
%Change
(Nominal
Terms)
% Change
(Real Terms)
Music MSS by Henry Purcell £ 300,000 £ 348,202 £ 500,000 66.67% 43.59%
The Library of Sir Pearl Kopper 350,000 406,238 1,000,000 185.71% 146.16%
The Beranger Donation / Ecole de Paris Collection 633,000 734,710 829,000 30.96% 12.83%
The Dean Walter Hussey / Charles Kearley Collections 447,000 518,824 854,000 91.05% 64.60%
The Porterhouse College Art Collection 1,463,000 1,698,075 3,867,000 164.32% 127.73%
Old Master Paintings 1,212,500 1,948,245 11,720,000 41.86% -11.72%
English Furniture and Furnishings 1,080,500 1,254,115 1,283,000 18.74% 2.30%
Continental Furniture 927,500 1,076,678 1,247,500 34.50% 15.87%
The Chinese Collection 692,000 803,191 1,025,000 48.12% 27.62%
Kunsthammer / Works of Art 909,000 1,055,072 1,275,500 40.32% 20.89%
£ 8,014,500 £ 9,843,350 £ 13,601,000 69.70% 38.17%
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2006 Valuation analysis By Collection
Total Valuation Sans Canaletto: £13,701,000
The Dean Walter Hussey
and Charles Kearley
Collections
£854,000
6%
The Beranger Donation /
Ecole de Paris
Collection
£829,000
6%
The Library of Sir Pearl
Kopper
£1,000,000
7%
Music MSS by Henry
Purcell
£500,000
4%
The Porterhouse
Collection:
Kunsthammer and
Works of Art
£1,275,500
9%
The Chinese Collection
£1,125,000
8%
Continental Furniture
£1,247,500
9%
English F urniture and
Furnishings
£1,283,000
9%
The Porterhouse College
Art Collection
£3,867,000
29%
Old Master Paintings
£1,720,000
13%
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Porterhouse College Valuation Comparison 1999-2006
(Real Terms sans Canaletto)
£-
£2,000,000
£4,000,000
£6,000,000
£8,000,000
£10,000,000
£12,000,000
£14,000,000
£16,000,000
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
1999 Valuation, Real Terms 2006 Valuation Percentage Change 1999-2006
1999 Valuatio n, Real Terms £348,202 £406,238 £734,710 £518,824 £1,698,075 £1,948,245 £1,254,115 £1,076,678 £803,191 £1,159,533 £9,947,811
2006 Valuatio n £500,000 £1,000,000 £829,000 £854,000 £3,867,000 £1,720,000 £1,283,000 £1,247,500 £1,125,000 £1,275,500 £13,701,000
P ercentage C hange 1999-2006 43.59% 146.16% 12.83% 64.60% 127.73% -11.72% 2.30% 15.87% 40.07% 10.00% 37.73%
A B C D E F G H J K TOTAL
KEY TO CATEGORIES: A-Music MSS by Henry Purcell; B-The Library of Sir Pearl Kopper;
C-The Beranger Donation / Ecole de Paris Collection; D-The Dean Walter Hussey and Charles Kearley
Collections; E-The Porterhouse College Art Collection; F-Old Master Paintings;
G-English Furniture and Furnishings; H-Continental Furniture; J-The Chinese Collection;
K-The Porterhouse Collection: Kunsthammer and Works of Art
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Bsa will act as agent for
porterhouse
Enhancing the value of the
collection
– unique relationship with auction houses and galleries
– reciprocal loans with remainder of collection
• Collection as magnet for cultural tourism
• Use of collection as educational tool
– Competitive fee structure
– planning for future of the Porterhouse collections
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the Bishop Stephen Bartholomew
Porter foundation
• costs of insurance
• Hiring of curatorial staff
• Ongoing conservation and maintenance
• Biannual revaluation of the collection
• Educational programming with community
• sustained via investment and additional income
– ‘drop box’ ala the British Museum
– Hiring of venue
– Image management and catalogue sales
– Annual fund drive with alumni and supporters
• Do not see contemporary art as Investment vehicle
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Part v – our Marketing proposal
Julia martin – director of marketing
• Bedford Square associates are discrete and
confidential with clients’ details
• Purpose of the college deaccessioning works is to
enhance colleges facilities by creating a modern
language chair and language laboratory.
• Porterhouse is a well rounded liberal arts college
and a modern language chair will reflect this and
will be a true asset to present and future students
of the college.
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Marketing Strategy
• To have a single unit sale through either
Sotheby’s or Christies
• By having the sale at either Christies or
Sotheby’s porterhouse is aligning itself with
the world’s most prestigious auction
houses.
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Location of sale
• Sell your pieces as part of a larger auction.
• The auction should take place in London.
• It is such a strong centre of the art market and has
close proximity to Oxford.
• We would also be able to get higher prices for the
contemporary British artists in the UK.
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The ‘Star’ of the Auction
• The Canaletto will be the star piece of the auction and
the centre of our marketing campaign.
• The Turner masterpiece became the most expensive
British painting sold at auction when it was bought for
$35,856,000 (£20.5 million) in April
We want to create the same ‘hype’ around the Canaletto.
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Financial Security
• Guarantee from Sotheby’s for the
Canaletto of £10 million.
• Private treaty sale for specific objects.
• This will ensure your privacy and that the
college gets its desired price.
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For valuing your collection Porterhouse College
needs a professional, creative company with highly-
skilled and dedicated individuals. You need a firm
that will take into consideration all legal and
ethical considerations when valuing your pieces
while still having an in-depth business knowledge of
the financial objectives of the college.
Porterhouse college need not look any
further than Bedford Square associates
45. Porterhouse college Presentation
jeongae im
erin kornfeld
julia martin
dana marzullo
michael nabors
Presented to Fulfil Requirements for
Sotheby’s Institute of Art – London
MAAB Programme
Group 8
06 June 2006
