Felix Salmon Talks Da Vinci: "Notes on $450,312,500 "
November 16, 2017
Nota bene #10
Notes on $450,312,500
- The hammer price was a round $400,000,000, which means that the
buyer's premium alone was more than $50 million. By convention, the
buyer's premium goes to the auction house for its troubles, but you can
be sure that Christie's grossed much less than $50,312,500 last night.
The seller will have negotiated "enhanced hammer," which means that the
Rybolovlev family will be receiving significantly more than $400
million. On top of that, the lot had a third-party guarantee, which
means that Christie's has to split its profits with the guarantor. That
said, even after a multi-million-dollar marketing campaign, Christie's
surely made a healthy profit on this lot.
- The last time this painting was sold by an auction house was only
four years ago, in 2013, when Sotheby's sold it privately to Yves
Bouvier for $80 million. That decision, to go with a private sale rather
than a glitzy public auction, now looks very, very stupid.
- Bouvier then flipped the work to Rybolovlev for $127.5 million.
When Rybolovlev found out how much Bouvier made on the deal, he was
furious, and basically gave up art collecting entirely. His decision to
sell the painting was made in anger, out of pique that he had been
ripped off. Now it seems he has made more money off one painting, in
four years, than most art collectors dream of making in a lifetime.
There's probably a moral here, but I have no idea what it is.
- The difference between the 2013 sale and the 2017 sale isn't just
four years and $300+ million, it's also the difference between a private
sale and a public sale. A public sale, at least when it's orchestrated
by Christie's in the way that this one was, involves glitz and expensive
marketing videos and hour-long lines and lighting worthy of a Thomas
Kinkade store...MUCH MORE