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Sotheby’s Struggles Amid Art Market Downturn: Can It Bounce Back? The art world is feeling the pressure, and Sotheby’s is at the center of it. With economic slowdowns in China, global conflicts, and rising interest rates, the art market is facing tough times. Sotheby’s, led by billionaire Patrick Drahi, is battling its own financial challenges with $1.8 billion in debt and delayed payments to suppliers. But hope is on the horizon with a $1 billion lifeline from Abu Dhabi. Will it be enough to keep Sotheby’s afloat and return the art market giant to its former glory? #ArtMarket #Sothebys #EconomicChallenges #FineArt #GlobalEconomy #Investment Source: The Art Market Is Tanking. Sotheby’s Has Bigger Problems.

Market Insights: Sotheby's September 2024 Banksy Auction Recent analysis of Sotheby's latest Banksy auction in London reveals significant market developments: • 52% sell-through rate, substantially below expectations • Mid-range works (£10,000-£50,000) comprised 97.1% of total sales • Notable performance gap: "Laugh Now" achieved £49,587 against £60,000 estimate These results raise important questions about market dynamics and collector preferences in the current climate. Our comprehensive report examines: • Emerging trends in thematic preferences • Price point analysis across different categories • Implications for collectors and market stakeholders View the complete market report here (members only) https://lnkd.in/eTNS6nGa #ArtMarket #InvestmentAnalysis #ContemporaryArt #MarketTrends

The art market is the dumps--but how is the view from within Sotheby's, one of the world's chief auction houses? My colleagues Matt Wirz and Ben Foldy and I have been tracking Sotheby's owner Patrick Drahi's struggles to pay down his $60 billion in debt across his telecom empire and wondering how that cash squeeze could be impacting Sotheby's, the famed auction house he bought as a family trophy five years ago. We found out a lot. The 280-year-old house, owned by highly leveraged billionaire Patrick Drahi, is pushing off payments to some of its art shippers, conservators, staff and even its sellers as its awaits a financial lifeline from an Abu Dhabi fund, expected later this year. The house is also postponing some of its season's biggest sales as it gathers material in a tough climate, all the while trying to persuade crusty collectors to buy into its new fee structure. On top of that, it's shelling out tens of millions on lavish brick-and-mortar spaces in New York, Paris and Hong Kong---and paying dividends to a parent company controlled by Drahi. During a meeting this month of higher-ranking executives, some executives expressed worries about whether the company would be able to keep paying its employees on time, according to a person familiar with the discussion. The house disputes this and says the Abu Dhabi funds will set them on a firmer path for growth, but the optics in the meantime aren't pretty. Check out our look at Sotheby's high-wire act online at The Wall Street Journal now. https://lnkd.in/eS3BveKF

50 leading artists with their markets analysed in terms of sales value, liquidity, average prices, bidder confidence and market momentum. The Sotheby’s/ArtTactic $1m+ Power Rank is based on a combination of five factors that influence an artist’s standing in the auction market today. These are: 1) Size: total value of $1m+ lots sold. 2) Liquidity: number of $1m+ lots sold. 3) Price point: average price of $1m+ lots sold. 4) Price confidence: performance of $1m+ lots, based on their hammer price against pre-sale low estimates. 5) Momentum: percentage change in sales value and lots sold for $1m+ lots. Comment "Zurani " to get the detailed report in your inbox.

Are the declines in sales and sentiment loom a mere cyclical downturn or a seismic shift in the art market? According to Christie's CEO, the art market has only seen two consecutive years of decline over the past two decades, suggesting resilience. However, today’s globalised market differs significantly from that of the early 2000s. The traditional brick-and-mortar gallery model is increasingly under threat. This is evident with Marlborough Gallery closing after eight decades, Mitchell-Innes & Nash transitioning to a project-based advisory model, Lévy Gorvy Dayan closing its Hong Kong gallery, and key departures from major players like Gagosian and Pace. Why? Where you live no longer determines where you buy and don’t buy. With the increasingly nomadic lifestyle of affluent collectors dividing their time between multiple homes and evading the grasp of any single tax jurisdiction, auction houses, dealers, and fairs are finding it harder to cultivate a dependable client base. While the global elite continues to attend major events like Frieze and Art Basel, the question remains: Will the gallery model evolve or dissolve? The Art Newspaper Gr: https://lnkd.in/e8ksyRxu

A #banana used in the conceptual artwork “Comedian” by @mauriziocattelan, designed to be taped to the wall with duct tape, sold for $6.2 million at a Sotheby’s auction. The #piece includes instructions for replacing the banana when it rots. The winning bid was placed by Justin Sun, surpassing six other competitors. The banana, purchased for 35 cents from a fruit stand in #Manhattan, sparked debate about value and spectacle in #contemporaryart. The New York Times The sale of this artwork is a clear example of how #conceptualart can challenge traditional #ideas of value, creativity, and meaning. Although at first glance it may seem absurd for a banana taped to a wall to reach such a high price, its true value lies in the provocation and #debate it generates about the boundaries of art and consumption in a society increasingly focused on the symbolic and the spectacular. It is a statement about the art market itself, where the concept and media impact often outweigh the physical object. #Genuine art or pure #spectacle? It all depends on the perspective. Sotheby's

🎨 A $6.2 Million Banana? Let’s talk about the power of ideas. Sotheby's recent auction featured Maurizio Cattelan’s #Comedian - a banana duct-taped to a wall - selling for $6.2 million. At first glance, it might seem absurd. But the real value? It’s not in the #banana or the tape - it’s in the idea 🍌 Cattelan’s work reminds us that art isn’t just about the medium; it’s about the message. What the collector purchased was the concept behind the artwork and a certificate of authenticity. The physical medium - a banana - can be replaced by any other banana, as it’s the idea and the certificate that hold the true value 📜 Comedian challenges notions of consumerism, impermanence, and the value we assign to everyday objects. Now, imagine this: if collectors are willing to invest millions in a banana, doesn’t it show that innovation and vision are worth the price? 🌍 At Digital Original, we apply this philosophy to creating blockchain-secured digital counterparts. Curious about how digital counterparts work? Let us know in the comments! 💬 #artmarket #bananaart #MaurizioCattelan #JustinSun #ArtWorld

Amidst the gloom, there are positive signs. This analysis of results from Christie’s recent Hong Kong sale is well worth reading. It is also important to remember that year-to-year changes of totals at comparable auctions do not speak definitively to changes in demand, as such changes may also be affected by the often circumstantial nature of supply.

Despite a 25% revenue decline (from 1.76b HKD in Spring 2023 to 1.32b HKD) at Hong Kong’s combined Modern & Contemporary Evening auctions at Sotheby’s, Christie’s, and Phillips this Spring, the Bought-In rate (BI rate: % of unsold lots) - shown in red - has remained low at 11%, especially compared to the previous slowdown in Hong Kong in 2016 when the BI rate spiked to 22%. A detailed analysis by Pi-eX of the performance of artworks auctioned at the Hong Kong sales reveals that this year’s low BI rate was influenced by several factors: - More consignors are choosing to withdraw their artwork ahead of, or during a sale to avoid a public BI as shown by an increase of the withdrawal rate from 4% in 2023 to 8% this year. Notable high estimate lots withdrawn include “Gold Stone” by Wang Huaiqing ($32m HKD) at Sotheby’s, “Shangri-La” by Matthew Wong ($42m HKD) at Christie’s, “Abstraktes Bild (947-5)” by Gerhard Richter ($26m HKD) at Phillips.  - Sellers in Hong Kong are increasingly willing to sell below their Low Estimate to avoid a BI. This is evident from the percentage of artworks sold below their low estimate (shown in gray), which rose from 15% to 27% in 2024, reaching its highest level since 2008. With only 40% of lots achieving a Hammer Price above the low estimate (versus 80% in 2021, shown in blue), the public auction market in Hong Kong is facing a challenging period. For now, sellers’ willingness to adjust their prices is maintaining liquidity. Will this last?  Source: Pi-eX MICRO Report: Modern and Contemporary Evening Sales in Hong Kong at the Top 3 Auction Houses: 2007-2024 #art #fineart #hongkong #china #auction #publicauction #christies #sothebys #phillips #auctionanalysis #artreport

As the auction scene is evolving in Hong Kong, the new scheduling has brought mixed results. With all three major auction houses now operating their own offices in Hong Kong, the traditional scheduling is changing. Instead of concentrating sales primarily in October and November, the calendar has expanded to stretch from September through December. This extended timeline has created space for more auctions and an increased number of lots offered, reflecting the dynamic nature of the Hong Kong art market. However, the revenue outcomes at the end of November 2024 tell a nuanced story. While Christie's and Phillips have achieved modest revenue growth compared to last fall (respectively +5% and +2%), Sotheby’s, on the other hand, has experienced a sharp decline in revenue (-49%). Source: Pi-eX MESO Report: Fall Hong Kong Sales Results at Christie's, Sotheby’s, & Phillips: 2007-2024 #ArtMarket #HongKong #AuctionTrends #Christies #Sothebys #Phillips #MarketAnalysis #PublicAuction