Just released: Our latest Sports Collectibles Market Report!
Stockpile, a financial learning platform aimed at young investors and their parents, has recently expanded its offerings by acquiring the talent, technology, and intellectual property of Investables, an alternative investing platform focused on high-end collectibles. The move is seen as a step towards broadening the investment options available to Stockpile’s audience, catering to the growing interest in tangible investments like collectibles among younger investors.
The acquisition brings several of Investables' key executives to Stockpile, indicating a potential enhancement of the platform's capabilities in alternative investment offerings. This strategic decision aligns with Stockpile's mission to make investing more accessible and engaging for children and families by including familiar and tangible assets such as sneakers, comic books, and autographed sports memorabilia in their investment portfolio.
In addition to the acquisition, Stockpile has announced the initial funding of the Stockpile Foundation, aimed at promoting financial independence in underserved communities, and the expansion of its executive team with seasoned professionals in fintech. These developments underscore Stockpile's commitment to its mission of revolutionizing financial education for the next generation, further bolstering its offerings and capabilities to provide a comprehensive and inclusive investing platform for young investors and their families. BUSINESSWIRE
Art museums are increasingly facing an increasingly prominent challenge: damage caused by visitors taking selfies. According to a report by specialist insurer Hiscox, there's a growing trend of individuals accidentally harming artworks as they back into them while trying to take selfies. This phenomenon, termed “a pandemic of selfies” by Hiscox's head of art and private clients, Robert Read, has led to significant financial losses and damage to irreplaceable pieces, highlighting the risks associated with modern visitor behavior in art spaces.
The insurer notes that half of its art underwriting business is now attributed to accidental damage, with a substantial portion caused by selfie-taking visitors. This situation forces art curators to navigate the delicate balance between embracing modern technology and preserving artworks for future generations. Incidents like the ‘Selfie Domino’ at the 14th Factory in Los Angeles, where a selfie-taker knocked over several pieces of an installation causing $200,000 in damages, underscore severe financial implications of such accidents.
In response to these risks, many art venues worldwide, including Brisbane’s Gallery of Modern Art and the British Museum, have banned selfie sticks to mitigate potential damage. Additionally, concerns over activist vandalism have prompted discussions on implementing more stringent security measures, akin to airport-style screenings. This heightened security is aimed not only at protecting the artworks from accidental damage by visitors but also safeguarding against deliberate acts of vandalism, as illustrated by the attack on Van Gogh’s Sunflowers at the National Gallery in London. ARTNET
INDYCAR has announced a new three-year trading card deal with Parkside Cards, set to launch March 2024, offering fans the opportunity to purchase cards at races, retail stores, and online, along with special race weekend promotions like contests and giveaways. The collection will feature a base set of 162 cards, including autographed cards, relic cards with pieces from the Indianapolis Motor Speedway, and various insert sets, available in hobby boxes and retail hanger packs. SCDAILY
An episode of PBS' Antiques Roadshow featured a woman from New England discovering her father's collection of 1948-49 Leaf baseball cards, neatly preserved in an old cigar box. The collection, highlighted by expert Simeon Lipman, is being sold at Weiss Auctions. SCDAILY
Francis Bacon's 1963 painting ‘Landscape near Malabata, Tangier’, a tribute to his late partner Peter Lacy, is set to lead Christie's 20th/21st Century Evening Sale in London with an estimate of $18.8 million to $25 million, marking its first market appearance in nearly 40 years. The painting, inspired by Vincent Van Gogh and filled with emotional intensity, reflects the love, loss, and passion of Bacon's relationship with Lacy, amidst a backdrop of personal turmoil and artistic acclaim. ARTNET
Upper Deck inked an exclusive multi-year deal with junior hockey star Michael Misa, a top prospect for the 2025 NHL Draft, featuring a collection of his trading cards and autographed memorabilia. Misa, celebrated for his exceptional skills and awarded "Exceptional Status" in the Ontario Hockey League, joins the ranks of hockey talents like Wayne Gretzky and Connor McDavid in partnering with Upper Deck for fan memorabilia. SCDAILY
Heritage has consigned two of the oldest Knicks uniforms that have ever come up for auction at the house. A ball boy with the team in the 1940s/50s is apparently the consignor. TWITTER
An AFA 85 graded ‘G.I. Joe Aircraft Carrier U.S. Flagg Playset’ was consigned to LCG Auctions. This is allegedly the highest graded copy of the toy to come to market. TWITTER
Mantel, a collectibles-focused social networking site has launched. The company debuted a more bare-bones version of their product a few months ago, but new features including badges and ‘Mantel Points’ have been added in this rollout. MANTEL
Heritage is auctioning the infamous door from Titanic, yes the one that apparently did not have enough room for Leo, in their march Planet Hollywood Signature Auction. Current bid sits at $40,000, we will have to see where the price lands after another 35 days of bidding. HERITAGE
Rally Road has sent their 1980 Rickey Henderson Rookie PSA 10 card to auction at ALT. A like-graded copy of the card most recently sold at Memory Lane auctions for $135,483. ALT
Feel free to reach out to Keenan@Altaninsights.com for any questions/comments.
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
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Rare guitars tug at the wallet strings, and iconic, stage-worn items take centerstage at auction, but the most valuable relic a fan can own from musical artists is no piece of memorabilia. It's the rights to their song catalogs.
The immense value of intellectual property was on display once again this week, as Sony Music has reportedly agreed to buy a stake in Michael Jackson's catalog for "at least" $600 million. Reports suggest the company's stake amounts to half of the interests, valuing the entirety at a staggering $1.2 billion, though there are additional whispers it could be as much as $1.5 billion. It's believed to be the most expensive valuation for a musician's assets, and it's the largest transaction ever for the work of a single musician.
The remaining stake is owned primarily by the Jackson Estate, which - according to estimates from Billboard - generates $75 million in revenue annually from Jackson's masters and publishing rights, the publishing catalogs of other artists (reportedly included in the deal), and merchandise and royalties revenue from theatrical shows (not included).
The King of Pop himself understood the value of catalogs very well, shrewdly acquiring and divesting stakes in other artists' work beginning in the early 1980s with the purchase of the entire Sly and the Family Stone catalog. It was Paul McCartney who first introduced Jackson to the concept of investing in royalties, and ironically, in 1985, Jackson completed the $47.5 million acquisition of the Beatles' entire publishing catalog via ATV Music. Sony bought half of that catalog in 1991 for $100 million and the remaining half in 2016 for $750 million.You could argue, then, that the $47.5 million purchase price was a steal, making Jackson a Smooth Criminal. Forgive us, we couldn't resist.
The popularity of streaming has invited greater investment interest in the music royalty space, boasting resilient income streams less vulnerable to economic weakness. Good economy or bad economy, we listen to music. It's not just the Sonys of the world bolstering their libraries. Blackstone and KKR have begun investing in the space, and other vehicles have become available for public investment. But those vehicles also highlight the perils of the space and the sometimes imperfect ways in which the public obtains access.
Perhaps the most well known publicly-traded fund, Hipgnosis Songs Fund, boasts a catalog that includes artists like the Red Hot Chili Peppers and Shakira. However, despite all the excitement around royalties, the fund's share price has nearly halved since the start of 2022. The downturn, though, is mainly a case of poor financial management.
Mounting debt servicing costs have forced the fund to suspend its dividend after projections of retroactive revenue realizations were revised downward. As income is - you know - kind of the whole point, shareholders did not take kindly to the news. Shareholders also quashed a proposed sale of catalogs to Blackstone, taking issue with the valuation. Adding to the mess, the fund developed grievances with its independent valuation firm, which has since resigned.
Yikes.
Investors aren't confined to the fund structure, though. Platforms like Royalty Exchange and Songvest allow users to pick and choose their royalty rights across genres and artists. At Public, which acquired fractional platform Otis, collectibles have taken a backseat in a changing economic environment. The platform did, however, purchase and offer fractional shares in a 25% stake in the Shrek composer's composition rights. The $889k offering debuted with an 8.5% dividend yield based on 2022 royalties. Thus far, it's been a hit, rising to a $1.5 million market cap, though that rise dilutes the trailing twelve month yield to 5.6%.
The challenge with those à la carte offerings is the immense complexity in understanding the mechanics of the royalty landscape. Consider the Hipgnosis example: an inaccurate projection of royalty revenues missed the mark by more than $10 million, leading to the dividend suspension. If a professional fund encounters such pitfalls, then it's difficult to expect an individual to confidently navigate the category, the structure of which some describe as byzantine.
Much like collectibles, royalties can serve as a financial play on cultural relevance, and unlike collectibles, regular cash flow is a central part of the thesis. The generation of those cash flows is complex to understand, though. How and when are royalties generated, what are the underlying trends in music consumption, and what are the risks to those trends? Do the trends differ between master and composition? Between streaming, sync, performance, and mechanical?
An asset class previously available only to those deeply engrained in the music industry has arrived to a broader audience, but until the space matures further, the titans of the music industry and the titans of private equity investing will generate the strongest outcomes. Those are the buyers with the funding to spend $600 million on the King of Pop and the expertise to maximize return on those assets.
The true spoils, though, belong to the true icons of music, who are cashing out to the tune of nine-figure sums. Next up is Queen, and the band's reported asking price pushes that nine to a ten. The $1.2 billion ask makes the $41 million in proceeds from the Freddie Mercury Estate's memorabilia look like a "poor boy from a poor family" by comparison
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
The UFC has entered into an exclusive multi-year trading card agreement with Fanatics Collectibles, marking the return of Topps to the sport since their previous partnership from 2009-2020. The first product to be launched under this new agreement will be 2024 Topps Chrome UFC, set to be released on February 28. This upcoming set will feature 200 base cards, a variety of color and tech parallels, key insert cards, and two autographs per box from popular UFC names like Sean O’Malley, Alexa Grasso, and Leon Edwards.
Senior Vice President of UFC Global Consumer Products, Tracey Bleczinski, highlighted the unique personalities and historic moments of UFC that fans can celebrate through these trading cards. Fanatics Collectibles CEO, Mike Mahan, also celebrated the partnership, noting the popularity of UFC trading cards among collectors and promising innovative cards featuring new stars. Fanatics plans to bolster this partnership with promotional efforts, including special interviews and live card breaks with UFC athletes on Fanatics Live, further enhancing the existing e-commerce and live-event partnership between UFC and Fanatics Commerce. UFC
Cordillera Investment Partners has successfully raised $62 million for its Whiskey Opportunities Fund, marking the firm's entry into the niche market of buying and aging whiskey barrels as institutional assets. Cordillera aims to capitalize on the underexplored whiskey aging market, offering investors a unique opportunity to diversify their portfolios with non-correlated assets that have potentially compelling potential returns. The "Bourbon Boom" has seen revenues in Bourbon and Tennessee Whiskey grow significantly, highlighting the increasing demand for premium whiskey products.
The Whiskey Opportunities Fund is set to invest in a diverse portfolio of whiskey assets both in the U.S. and internationally, leveraging the steep aging curve in the whiskey industry where aged products fetch significantly higher market prices than new-fill bottles. With the super premium category of whiskey experiencing notable volume growth, Cordillera sees a great opportunity in addressing the capital constraints faced by craft brands and distillers. BUSINESSWIRE
Rally’s first edition copy of ‘Harry Potter and the Philosopher’s Stone’ received a buyout offer of $132,500 which was accepted by 69.8% of shares. Resulting in a net cash return since last trade of +26.00% and a net cash return since IPO of +68.00%. RALLY
CGC initiated legal action against two defendants that have been accused of re-holdering slabs used on highly valued comic books for ones of significantly lesser quality. Following that, CGC also accuses them of selling these fraudulent slabbed books via several eBay accounts. Get the full story from Hobby lawyer extraordinaire, Paul Lesko’s Twitter(X) thread.
Fanatics/Topps is introducing autographed memorabilia redemption cards in blaster boxes for 2024 Topps Series 1 Baseball, exclusively available on Fanatics’ website ahead of the official release. These $29.99 boxes, which contain nine packs of cards each, offer collectors the chance to find redemption cards that can be exchanged for signed baseball memorabilia from athletes under contract with Fanatics, including items like an autographed Adley Rutschman baseball. SCDAILY
Five companies specializing in sports cards are among the top 21 eBay sellers globally as of early 2024, indicating a continued market interest in sports collectibles on the platform. COMC, DCSportscards, Burbank Sportscards, Greg Morris Cards, and Probstein123 received anywhere between 18,000 and 50,000 feedback ratings in the last 30 days, with COMC achieving the fifth highest selling volume of eBay sellers globally. SCDAILY
Jimi Hendrix’ famous headband, photo-matched to seven performances across 1969-70, is up for sale at Heritage. Current bid sits at $14,500—imputing a realized price of $17,400 if bidding goes no further. HERITAGE
Ronald Perelman is embroiled in a legal battle with a group of insurers over a $410 million claim for damages allegedly sustained by five blue-chip artworks in a 2018 fire at his Hamptons estate. The insurers contest Perelman's claim, alleging the artworks were undamaged and valued at only $103 million, while Perelman insists on the authenticity of his claim, accusing the insurers of bad faith and highlighting their selective use of his statements to avoid payment. ARTNET
A 1884 painting by Vincent van Gogh, stolen from a Netherlands museum in a late-night theft three years ago, will be displayed in March after being anonymously returned with a significant scratch. Art detective Arthur Brand recovered the artwork after receiving it in a crumpled IKEA bag; it is assumed that no one in the criminal underworld willing to sell it due to its high profile and associated risks. ARTNEWS
John Lennon's personal copy of The Beatles' "White Album," identifiable by its serial number 0000006, is up for sale at Heritage with a current bid of $50,000 ($62,500 after fees). This rare stereo pressing, once gifted to his chauffeur and bodyguard, comes complete with original inserts and shows some signs of wear. HERITAGE
PSA will introduce a new blue label for collectibles where only the autograph has been authenticated, differentiating them from items with the red label which indicates full authentication and grading of the item itself. This change aims to clarify for customers exactly what they are purchasing and maintain trust in PSA's services. TWITTER
Feel free to reach out to Keenan@Altaninsights.com for any questions/comments.
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
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Not even a TI-83 calculator could spare you from the complexities of calculating the final sales price of a Sotheby's auction lot based on the current bid. Or worse, backing into the hammer price from the final sales price. We've been there. Often. It was way harder than it should've been, and for prospective bidders and consignors, tedious math doesn't appeal.
But that's all set to change.
In a surprise move revealed last week, Sotheby's announced that it's simplifying both its buyer's premium and seller's commission schedules, removing mental gymnastics from a needlessly complicated process. On the whole, buyer's premiums will decrease, while commissions will be more transparent and uniform. The move ensures greater simplicity, lowering confusing barriers to entry for new auction participants, and, ideally, boosting overall activity. As houses seek to attract new, younger bidders and consigners, simplicity and clarity are calling cards worth leaning on.
Let's break down the changes, which will go into effect in May.
Currently, the buyer's premium adheres to a dizzying, three-tiered schedule:
In addition, all lots incurred a flat 1% overhead fee. Because why not?
See? Complicated.
With the proposed changes, bidders will now incur a 20% buyer's premium on the hammer price up to $6,000,000 and a 10% premium for the portion of the hammer price above $6,000,000. The pesky 1% overhead premium is no more. So, the vast majority of lots will have a simple buyer's premium of 20%, in line with many smaller auction houses. You can put the calculators away, move the decimal point to the left, and double it. Then add it to your hammer price. Voila: your sales price.
What does that mean in practice?
A lot that hammers for $1,000,000 will now have a final sales price of $1,200,000, $70,000 less expensive than $1,270,000 previously. A lot that hammers for $6,000,000 will have a final sales price of $7,200,000, $28,500 lower than $7,228,500 previously.
And what about the big dogs? A $50,000,000 hammer price will now translate to a $55,600,000 sales price, a savings of $2,184,500 versus the old schedule. Of course, maybe "savings" is the wrong word choice here. Because here's the thing: to a buyer, the sales price is the sales price. The buyer cares little about how that price is divided up between hammer price and buyer's premium, or between the seller and the auction house. Their total willingness to pay shouldn't change materially as a result of changes in the coefficients of those variables. When they receive their final invoice, they're not really "saving" anything, unless you believe bidders are focused solely on hammer price and are surprised each time their winning bid is inflated by 27% or thereabouts.
While we're sure that happens from time to time, it's more the exception than the rule. Bidders are generally at least approximately aware of the projected sales price with fees as they're bidding, and that's the number that matters to them.
The changes do, however, mean more cash in consignors' pockets than before, because if sale prices remain roughly the same and buyer's premium is lower, that means hammer prices will be higher. It's the hammer price that informs proceeds to the consignor, though seller commissions are sometimes deducted. Perhaps the least transparent and most closely held economics of the auction world, though, have been those seller commissions, meaning the percent of the hammer price that goes to the auction house (not to be confused with the buyer's premium, the percentage of the hammer price added on to what the winning bidder must pay, also directed to the auction house).
These commissions are oft-negotiated and rarely known to the bidding public or prospective consignors. Basically, the consigning conversation starts with the consignor revealing what they have and negotiating toward a commission structure from there. That contributes to vulnerable feelings for the consignor, who's left unsure of the fairness of the deal they're getting, encouraging them to shop it around.
The negotiations are all but over now. Here's how the seller commission schedule breaks down:
Imagine the resources and hours that will be freed up for Sotheby's employees who no longer need to have those cumbersome commission negotiations. While there will no doubt be attempted haggling, the establishment of a concrete schedule removes considerable friction from the process. And less friction is welcome to the house and prospective clients alike.
One area where the haggling will surely continue? Estimate setting.
Sotheby's will now receive a 2% performance fee for any lot that hammers above the high estimate. Consigners already want to see expensive estimates on their treasures in many cases. That desire will only be amplified now that Sotheby's is directly compensated for hurdling the high estimate. Contentious conversations lie ahead.
Overall, though, simpler and more consignor-friendly terms should, in theory, mean more consignors and better consignments. Better consignments attract more bidders. Those bidders become repeat bidders and eventually consignors. Sotheby's has made the bold move first, and while the house may sacrifice on fees in the short-term, it's betting that the share gains, particularly among newcomers to the auction scene, will make it more than worthwhile.
After enjoying a very slight fee discount to its chief competitor in recent years, Christie's is officially on the clock...and in an unenviable position. Follow suit immediately and look like a copycat? Or hold firm and look greedy by comparison?
First mover advantage.
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
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Photo: Christie's, Graphic: Altan Insights
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With the possible exception of Jim Irsay, nobody has a better guitar collection than a rock star.
Few collections represent the collision of already-valuable items with renowned provenance better than a rock star's guitar collection. As their fame grows, so does their collection, bolstered by some of the most desirable instruments money can buy.
For Mark Knopfler, there was one prize that could serve as a particularly suitable award for his achievements: a 1958 Les Paul Standard. The lead guitarist and vocalist for Dire Straits acquired his grail in 1995, and it quickly became his recording guitar of choice. That meant he would need a back-up, so he purchased a 1959 Les Paul as well. See how quickly these collections can grow?
The '58 was not up for sale at Christie's last week in an auction of Knopfler's collection. It sounds like that guitar was too near and too dear. But the '59 was, and it was the top-billed lot in the sale, boasting an estimate of £300,000 - £500,000. It comfortably hurdled that range, selling for £693,000.
Believe it or not, that was one of the more modest performances versus estimates, which proved quite conservative for the type of single-owner sale that so often moves the needle in music memorabilia markets. The sale amassed £8.8 million across 122 lots. Twenty-three lots recorded six-figure results despite only one lot - the '59 Les Paul - having an estimate in six-figure territory. 25% of hammer proceeds were split between three different charitable organizations.
The nearly £9 million total puts the sale among the highest-grossing single-owner events of the past several years, trailing only the likes of Freddie Mercury and David Gilmour; Gilmour's guitar collection generated $21.5 million in volume at Christie's back in 2019. On its own, the Knopfler sale would be competitive with the music totals of some auction houses for an entire year - an achievement that isn't uncommon given the market's structure.
Perhaps the most striking result was the £592,200 paid for a 1983 Reissue of the '59 Les Paul Standard. That's right: the Reissue sold for nearly as much as the original, despite a much lower estimate of £10,000 - £15,000. Knopfler had long yearned for a Les Paul, and as Dire Straits took off in the early-to-mid 1980s, he felt the older ones were still out of reach, so he settled for the 1983 Reissue. He used the guitar to record two of the band's most famous tracks, "Money for Nothing" and "Brothers in Arms," both from the Brothers in Arms album. That album topped the charts for weeks in the US and the UK, becoming the first to sell over one million copies on CD. The Reissue was the instrument of choice to play those two songs on tour and was famously called upon for Live Aid at Wembley in 1985.
Suddenly, it becomes quite clear why the guitar sold for as much as it did, and it becomes far less clear why the estimate was so low, as if the instrument was any old Reissue and not one used to produce rock and roll history. Frankly, it's bizarre.
The original '59 Les Paul is, on its own, the more coveted guitar, but its use dates to a later part of Knopfler's career after Dire Straits had disbanded. It's not uncommon for those Les Pauls to sell for mid-to-low six-figure sums without rock star provenance, though Knopfler's surely added a premium. But that premium pales in comparison to the value imbued upon the 1983 Reissue from its prolific use. In memorabilia, moments and eras of use matter, and for Knopfler, the tour of duty for the Reissue was of the utmost significance.
Other sale highlights included two heavily used Schecter Telecasters, which sold for £415,800 and £277,200 respectively. Custom guitars built for Knopfler by John Suhr at Rudy Pensa's Rudy's Music store also sold well, with three hitting six-figues, including the £504,000 "MK-1" which blended the shape of a Fender Strat with the maple and mahogany of a Les Paul. Speaking of Fender Strats, all three Mark Knopfler Signature Stratocasters available for bidding sold for more than £100,000. None were estimated to sell for more than £6,000, perhaps informed by Knopfler's insistence they be factory-produced and accessible. But there's nothing accessible about a Mark Knopfler Signature Stratocaster directly from the collection of Mark Knopfler.
Once again, the market demonstrated its significant appetite for music memorabilia offered straight from the source. While auctions of variety among both artists and types of memorabilia hit the block with mixed results depending on credibility, direct provenance continues to rule the present market. Those events generally only happen once in an artist's lifetime though - or after it - with demand built to a crescendo in anticipation of long-sequestered supply. Buyers don't miss the opportunity.
Elton John is up next at Christie's later this month. If the Knopfler sale was any indication, prices for the Rocketman are going to the moon.
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
Sotheby's announced its 2023 sales totaled an impressive $7.9 billion, nearly matching its record figure from the previous year despite a slower art market pace. This achievement was bolstered by a robust luxury auction sector and an increase in private sales, with notable sales including Pablo Picasso’s "Femme à la montre" fetching $139.4 million and Gustav Klimt's "Dame mit Fächer (Lady with a Fan)" selling for $108.5 million. The auction house also highlighted its success in single-owner auctions, contributing significantly to its annual sales. Looking forward, Sotheby's is set to expand its physical presence with new spaces in Hong Kong and Paris, and a move to the iconic Breuer building in Manhattan. ARTNET
In addition to its sales achievements, Sotheby's has undertaken a significant overhaul of its auction fee structure. Here is a breakdown of the changes that will take effect on May 20th:
In non-corporate communications news, it was announced this week that a New York federal jury cleared the house of all allegations made by Russian billionaire Dmitry Rbolovlev. He accused Sotheby’s of defrauding him in art sales worth tens of millions of dollars. Sotheby’s argued that it properly adhered to all legal and industry standards when dealing with the billionaire, and were not aware of Swiss art dealer Yves Bouvier’s backroom dealings. ARTSY
Rounding out a week of news from the house, Michael Jordan’s six championship game-worn shoes, known as ‘The Dynasty Collection’, just sold for $8,032,800 closing out a big week of news for the house. SOTHEBYS
Rally road shareholders vote to sell their fractionally-owned ’79 Topps Wayne Gretzky rookie card for $920,000. Netting a +10.55% return since IPO and a +16.22% return from the last trade. RALLY
Heritage’s Winter Platinum Night Sports Auction includes a set of 16 1979-80 O-Pee-Chee Hockey Wax cases. Current bid is set at $1,575,000, imputing a value of just under $100,000 per box. Check out this video from Heritage explaining the unique backstory of this lot. HERITAGE
Speaking of video, here is another one. “The Hobby” is a documentary set to release on February 16th. TWITTER
Two footballs thrown by Tom Brady during Super Bowl XLIX for touchdown passes are being auctioned by Gotta Have Rock and Roll, with the two estimated by the house at $1 to $1.5 million; although, Altan’s very own Bradley Calleja thinks otherwise. These pieces from the Patriots' victory over the Seahawks highlight Brady's record-setting performances and are accompanied by authentication, including a letter from Danny Amendola for one of the balls. GHRR
MeiGray has launched its own NBA game-worn jersey auctions, starting with Los Angeles Lakers Classic Edition jerseys from the 2022-23 season, despite the NBA's partnership with Sotheby’s for NBA Auctions. The auctions will feature game-worn and game-issued jerseys, including those from LeBron James and Anthony Davis, with future events to include Golden State Warriors jerseys and selections from MeiGray's individual team deals. SCDAILY MEIGRAY
A ‘1983 Gibson Les Paul Standard ‘59 Reissue’ sold for £592,200, outstripping the low estimate by 59x. The instrument was sold as part of Mark Knopfler’s collection at Christie’s. CHRISTIES
Feel free to reach out to Keenan@Altaninsights.com for any questions/comments.
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
Photo: Sotheby's
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The spotlight invites scrutiny.
The NBA and Sotheby's announced their new game-worn partnership to great acclaim in November. Finally, the parade of jerseys was emerging from the obscurity of the NBA Auctions site to the well-lit halls of one of the world's most renowned auction houses. The secret - seemingly known only to existing basketball memorabilia collectors - would soon be out, and throngs of new bidders would vie for the game-worn garb of the sport's brightest stars.
The partnership tipped off with a dream start from a dream asset: Victor Wembanyama's debut-worn Spurs jersey. Against an estimate of $80,000 to $120,000, the jersey sold for a brow-raising sum of $762,000. If the result was a harbinger of things to come, then this partnership would indeed elevate game-worn hoops collecting to a new level. The Wemby jersey captured headlines - rightfully so - but behind the curtain cast by a jersey made for a man standing 7'4, results were lukewarm, at least relative to the expectations cast by Sotheby's.
In that first event, 42 of 64 lots hammered for prices below their low estimates. Fifteen lots hammered within their ranges, while only seven exceeded them. Absent the top-billed Wembanyama lot, the aggregate hammer price of just under $384k came up shy of the aggregate low estimate of $428,000. Perhaps then, the $762,000 price for the debut jersey was not a reflection of the partnership's strength but instead simply the sports memorabilia market doing what it does at the moment: paying top dollar for premier assets.
Auctioning a high volume of sports memorabilia lots at a regular cadence is not something Sotheby's has a long and documented history of doing. In recent years, they've demonstrated an immense ability to achieve museum-quality prices for museum-quality pieces. Single-lot auction events have repeatedly delivered seven-figure sale prices for Jordan, Kobe, LeBron, Wilt, Maradona, and Messi. Irrevocable bids or not, that's no small feat. But if you've watched Part II of those auctions, featuring dozens of lots of a lesser caliber, you've noticed many results fail to stack up against estimates.
This frequent-cadence, higher-volume game is new to the house in sports. It seems that adjustment will take time and a recognition that each individual jersey will have a harder time standing out in a quickly growing sea of them. What seems like an extraordinary jersey due to a statistical accomplishment or an occasion (Christmas, In-Season Tournament, etc) often proves ordinary when competing for bids with 30 other jerseys today and who knows how many more tomorrow. That was a reminder frequently issued during last week's International Player Edit event.
The event saw 22 of 35 lots hammer below their estimate ranges, with just three finishing above. Some of the jerseys with the highest expectations came up shortest:
Lots with a low estimate of $10,000 or higher achieved a hammer ratio (hammer price divided by low estimate) of just 0.81 in the event. Lots with a low estimate under $10,000 performed far better versus estimates, achieving a hammer ratio of 1.04. Demand for assets lining the floor of these events may be in a healthy spot. But the qualifying standards for standout prices are growing more strict. As the supply of jerseys continues to hum to market (and hum, it will - there are seven more Sotheby's events scheduled in 2024), the bar for extraordinary will only rise.
Even Victor Wembanyama recording all kinds of debuts and rookie achievements won't permanently spare the results, although he continues to draw spirited bidding. The $82,550 paid for his City Edition jersey was the standout of last week's event, outperforming a $30,000 - $50,000 estimate.
The Sotheby's partnership no doubt represents a step forward for the category. It remains early, and expectations will be adjusted should audiences not rise to meet them. But gone are the days of shadows and obscurity on the NBA site, where jerseys had no estimates to stack up against. The spotlights are on the center of the collecting hardwood, and they're illuminating a clumsy tip-off.
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Photo: PWCC
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In June of 2021, with the sports card market on a meteoric rise, Goldin dropped jaws with the $34,440 sale of Mia Hamm's 1992 Sports Illustrated for Kids rookie card. The result more than doubled the prior record for a women's sports card. In mere months, it would look like a paltry sum. As collectors consumed headlines celebrating the Hamm sale, they quickly turned their attention to the historically overlooked female portion of the market.
If that market's relative anonymity was about to end, then there was one athlete who stood to benefit immensely from the rising tide: Serena Williams.
Look, we don't study hydrodynamics, but as it pertains to markets of things, a rising tide does not always lift all boats. Sometimes, it lifts only the most impressive ones. From the absurdly lengthy list of on-court achievements to cultural impact, Williams exhibits many of the same qualities collectors look for among male icons. Following that logic, collectors focused their attention on her cards to close 2021 and begin 2022.
Where those cards went, no other female athlete's followed. Those most enthusiastic about the women's sports card thesis piled into Serena - and Serena alone - at the high end. When the market sputtered, there was no safety net below, no sturdy foundation of collector demand to fall back on. The market had endured a rapid and steep climb to the top of the roller coaster track, and the hellish descent was about to hurl lunch onto spectators below.
The very same card that set the $263,200 record in May sold again for $39,600 in November, a mere six months later.
There hasn't been a sale higher than $150,000 for a women's sports card since the record sale, and there's only been one higher than $100,000 (achieved just a month after the record). There were no confirmation sales of the record level achieved in May of 2022, especially outside of Serena. The market hadn't truly reset to those heights; it had just delivered a handful of hype-induced bidding wars in a frothy moment. That Mia Hamm rookie receded to $6,300. The value of Naomi Osaka collections vanished.
The top 2023 public sale of a Serena Williams card - and any female sports card - was $26,400. Appetite for cards of other female superstars was dormant, with only Sabrina Ionescu and Coco Gauff becoming new visitors to five-figure territory (and just barely in both cases). It was a year to forget for a trend that burned so bright a year earlier, a trend that appeared to be built to unsustainable heights on a mostly rational thesis married with market hysteria.
All of that makes what happened last week at PWCC more remarkable: Caitlin Clark's 1-of-1 Superfractor Auto from 2022 Bowman University, graded PSA 10, sold for $78,000.
That's the highest result for a women's sports card since June of 2022, a price that would have more than doubled the record from mid-2021. And it comes for a college card of an athlete still in college. Those factors, however, may work in Clark's favor - some speculate that her commercial value is higher now, at Iowa in the NIL era, than it will be in the WNBA. Whether that's true or not, sports fans are near universal in this assertion: Clark is absolutely box office. Her clutch, cerebral, and confident play has universal appeal, and that appeal may be revealing itself in card markets in ways we haven't seen over the last year and a half.
While the $78k result is somewhat of an outlier, there's evidence of growing demand further down the chain. For instance, another Clark Superfractor Auto from the set sold for $13,433 on eBay last week. Meanwhile, many of her refractors can be found among the set's top results after the cascade of Wembanyama cards and the much less frequent smattering of Caleb Williams.
It was never realistic to expect the market for women's sports cards to reach parity with men's in a few months time. What is realistic is the expectation that box-office stars with broad appeal can command box-office prices. It hasn't happened in awhile, but in Caitlin Clark, the women's card market might have found a new foundational building block.
After all, Serena could use a little help.
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
Phillips has undergone significant changes in its executive staff following the sudden departure of its CEO Stephen Brooks. Ed Dolman, who previously served as the executive chairman, has been reinstated to lead Phillips in a new role that merges the responsibilities of the executive chairman and CEO. Amanda Lo Iacono, who has been managing the house’s 20th century and contemporary art departments, has been promoted to the new position of deputy chief executive officer, while Cheyenne Westphal continues as the global chairwoman. Dolman, who previously led Phillips through a period of substantial growth, had stepped down as CEO in 2021 but remained active in the company’s operations. His return is part of Phillips’ strategic response to recent challenges, including a 15% drop in global auction sales and financial pressures.
Phillips' leadership reconfiguration is aimed at steering the auction house through a tough economic climate, having experienced declining sales and revenue losses. This includes a decision by the board in October to withhold dividends to its Russian-owned Mercury Group, following poor UK sales results. The changes at Phillips come amid a broader context of economic difficulties in the auction industry, with the company looking to consolidate its strengths and navigate through these challenges. ARTNEWS
In the ongoing trial involving high-profile art transactions, key witnesses have shed light on the inner workings of the elite art world and the sales of some of the most expensive artworks. The trial, now in its third week, has focused on detailed testimonies about meetings and communications related to the sales. Samuel Valette from Sotheby’s detailed the 2013 sale of Leonardo da Vinci’s "Salvator Mundi" for $83 million, which included negotiations at a dinner in Paris. This artwork was later resold by Yves Bouvier to Russian billionaire Rybolovlev for $127 million, sparking Rybolovlev's fraud claims. The use of code names for major deals, such as “Cottonmouth” for Gustav Klimt’s "Wasserschlangen II," was also discussed, highlighting the secretive nature of these transactions.
Art advisor Sanford “Sandy” Heller, another key witness, recounted a lunch meeting in St. Barts that brought to Rybolovlev’s attention the dealings of Bouvier, leading to further revelations about the art world's dynamics. Heller's conversation with Rybolovlev included discussions about Amedeo Modigliani’s "Reclining Nude On a Blue Cushion," which had been bought by Rybolovlev at a significantly marked-up price. The trial, revealing intricate details of the art market and the roles of various players, is expected to continue until early- to mid-February. Representatives for Bouvier and Sotheby's have made statements defending their positions, while Rybolovlev's attorney has pointed out alleged lack of transparency and mismanagement in the transactions. ARTNET
Courtyard.io launches site redesign highlighting dark mode, streamlined support, and new filtering functionality. COURTYARD
Dire Straits guitarist, Mark Knopfler, has consigned more than 120 guitars to be sold at Christie’s London on January 31st. CHRISTIE’S
Bob Beamon, famous for his record-breaking long jump at the 1968 Olympics, is auctioning off his gold medal through Hunt Auctions and Christie’s. It is expected to fetch between $400,000 and $600,000. SCDAILY
The personal collection of NHL legend Mike Bossy, including over 100 items, is set to be auctioned at the Heritage Winter Platinum Night Sports Auction starting February 2. The collection features significant pieces from Bossy’s career, such as his Stanley Cup rings, the first trophy he won at age nine, game-worn jerseys, and his Canadian passport, with some items expected to fetch upwards of $40,000. SCDAILY
2022 Bowman University Superfractor RC Auto DNA 10 1/1 Caitlin Clark sells at PWCC for $78,000. Setting the all time price record for a women’s basketball card. PWCC
Grey Flannel Auctions sells a 1990-91 Charles Barkley 76ers game-used jersey for $30,343. GREYFLANNEL
A long-lost portrait by Gustav Klimt, "Portrait of Fräulein Lieser," resurfaced after nearly a century and is expected to fetch up to $54 million at a Vienna auction house, im Kinsky. The painting, one of Klimt's last works and featuring the daughter of a Viennese industrial magnate, will tour internationally before its sale on April 24, marking a rare and significant event in the art market. ARTNEWS
Rafael Nadal's championship-winning racket from his 2007 French Open victory over Roger Federer is up for auction, with Prestige Memorabilia expecting it to potentially exceed $139,700, the record set by Nadal's 2022 Australian Open racket. This significant piece of tennis history, which marked Nadal's third Grand Slam title, was previously displayed in the Australian Tennis Museum before its closure. SCDAILY
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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.
