Porterhouse Presentation

Porterhouse college Presentationjeongae im

erin kornfeld

julia martin

dana marzullo

michael nabors

Presented to Fulfil Requirements forSotheby’s Institute of Art – LondonMAAB ProgrammeGroup 806 June 2006

b s abedford square associates, ltd.

fine arts consultants

Valuation Project for the Committee of Fellowsof Porterhouse College

Professor Robert ChildDr. David Bellingham

Dr. Derrick ChongMr. Jeremy EcksteinDr. Henry Lydiate

Dr. Catherine Morel

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Introductions

Part I – our valuation report: methodologies and structureDana Marzullo – director of valuation

Part II – legal and ethical concernsJEongae im – staff counsel

Part iii – highlights of the porterhouse collectionsErin kornfeld, phd – senior art historian

Part iv – financial concernsmichael nabors – chief financial officer

Part v – our marketing proposalJulia martin – director of marketing

Concluding remarks / q&a

Sample object report

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Part I – our valuation report: methodologies and structureDana 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 Process1) Analysis of the collection and allocation2) Cross-checked past auction data from similar

objects with the same size, time period, and subject matter or design

3) Adjusted previous valuations for inflation4) 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 concernsJEongae im – staff counsel

Bequests and GiftsDroit de suiteProvenance

Conservation

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Bequests and GiftsSome 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 suiteFrom 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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ProvenanceNot 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 collectionsErin kornfeld, phd – senior art historian

Old masterspost war and contemporary art

chinese collectionEnglish furniture

music

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Old masters

OLD MASTERS 100 INDEX: 1999-2005(Index: Jan-99=100)

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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


• 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


• Adjusted Value: £290,220.39


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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.




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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.




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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



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Part iv – financial concernsmichael 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 Val uat ion anal ysis By Co l l ec t ionTot al Val uat ion: £23,701,000

The Po r t er ho use Co l l ege Ar t Co l l ec t io n

£3,867,00017%

Ol d Mast er Pain t in gs£11,720,000

50%

The Dean Wal t er Hussey an d Char l es Kear l ey

Co l l ec t io n s£854,000

4%

The Ber an ger Do n at io n / Ec o l e d e

Par is Co l l ec t io n£829,000

3%

The Libr ar y o f Sir Pear l Ko ppeR£1,000,000

4%

Music MSS by Hen r y Pur c el l£500,000

2%

The Po r t er ho use Co l l ec t io n :

Kun st hammer an d Wo r k s o f Ar t

£1,275,5005%

The Chin ese Co l l ec t io n£1,125,000

5%

Co n t in en t al Fur n it ur e£1,247,500

5%

En gl ish Fur n it ur e an d Fur n ishin gs

£1,283,0005%

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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

Po r t er ho use Co l l ege Val uat io n Co mpar iso n 1999-2006(Ac c o unt ing fo r Infl at io n - Real Ter ms)

£-

£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 Valuation, 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 Valuation £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 resultsSans canaletto

1999 Valuation

1999 ValuationAdjusted 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 Val uat ion anal ysis By Co l l ec t ion Tot al Val uat ion Sans Canal et t o : £13,701,000

The Dean Wal t er Hussey an d Char l es Kear l ey

Co l l ec t io n s£854,000

6%

The Ber an ger Do n at io n / Ec o l e d e Par is

Co l l ec t io n£829,000

6%

The Libr ar y o f Sir Pear l Ko pper£1,000,000

7%

Music MSS by Hen r y Pur c el l£500,000

4%

The Po r t er ho use Co l l ec t io n :

Kun st hammer an d Wo r k s o f Ar t

£1,275,5009%

The Chin ese Co l l ec t io n£1,125,000

8%

Co n t in en t a l Fur n it ur e£1,247,500

9%

En gl ish Fur n it ur e an d Fur n ishin gs

£1,283,0009%

The Po r t er ho use Co l l ege Ar t Co l l ec t io n

£3,867,00029%

Ol d Mast er Pa in t in gs£1,720,000

13%

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Po r t er ho use Co l l ege Val uat io n Co mpar iso n 1999-2006(Real Ter ms sans Canal et t o )

£-

£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 Valuation, 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 Valuation £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 Change 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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Bishop Porter Foundation10-Year Projection

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

INCOMEInitial Endowment 2,000,000£ -£ -£ -£ -£ -£ -£ -£ -£ -£

Rollover from Previous Year - 1,826,187 1,832,568 1,827,440 1,832,893 1,830,510 1,839,918 1,842,992 1,859,708 1,872,353

Interest/Dividends 125,000 228,273 229,071 228,430 229,112 228,814 229,990 230,374 232,463 234,044

Image Management - 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Catalogue Sales 10,000 5,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Venue Hire - 20,000 23,000 26,450 30,418 34,980 40,227 46,261 53,200 61,180

Annual Endowment Drive - 50,000 52,500 55,125 57,881 60,775 63,814 67,005 70,355 73,873

TOTAL INCOME 2,135,000£ 2,134,460£ 2,144,139£ 2,144,445£ 2,157,304£ 2,162,079£ 2,180,949£ 2,193,632£ 2,222,727£ 2,248,450£

EXPENSESFund Management Fees 30,000£ 27,393£ 27,489£ 27,412£ 27,493£ 27,458£ 27,599£ 27,645£ 27,896£ 28,085£

Insurance 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000

Valuation 8,813 - 10,000 - 10,000 - 10,000 - 10,000 -

SalariesCurator 40,000 42,000 44,100 46,305 48,620 51,051 53,604 56,284 59,098 62,053

Collections Manager 35,000 36,750 38,588 40,517 42,543 44,670 46,903 49,249 51,711 54,296

Outreach / Education 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 32,619

Maintenance 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Miscellaneous 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

TOTAL EXPENSES 308,813£ 301,893£ 316,699£ 311,552£ 326,794£ 322,161£ 337,957£ 333,924£ 350,374£ 347,054£

PROJECTED YEAR END 1,826,187£ 1,832,568£ 1,827,440£ 1,832,893£ 1,830,510£ 1,839,918£ 1,842,992£ 1,859,708£ 1,872,353£ 1,901,396£

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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

Porterhouse college Presentationjeongae im

erin kornfeld

julia martin

dana marzullo

michael nabors

Presented to Fulfil Requirements forSotheby’s Institute of Art – LondonMAAB ProgrammeGroup 806 June 2006

Porterhouse Presentation

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Transcript of Porterhouse Presentation