Gagosian Gallery: An Impending Crisis?

Gagosian Gallery: An Impending Crisis?

Gagosian Gallery
An Impending Crisis?
Charles Shoener
DYNM 672
May 1, 2013
Larry Gagosian
o  Born in 1945 (68 years old)
o  Owner of Gagosian Gallery
o  High-end, blue-chip contemporary art gallery
o Widely regarded as the most important living gallerist
o  2012 ArtReview “Power 100”: #2 (overall)
o  Highly secretive in dealings (norm in the art world)
o  Estimated annual sales: ~ $1 billion
http://www.style.com/slideshows/parties/091808GAGO/01m.jpg
Gagosian Gallery
2 London Locations
3 NYC Locations
1 Hong Kong Location
1 LA Location
2 Paris Locations
1 Athens Location
1 Geneva Location
1 Rome Location
http://upload.wikimedia.org/wikipedia/commons/6/6d/1942.11_blank_world_map.PNG
Currently operates 12 galleries throughout the world.
Twenty Five Major Contemporary Artists
1. Jasper Johns
2. Andy Warhol
3. Gerhard Richter
4. Bruce Nauman
5. Roy Lichtenstein
6. Robert Rauschenberg
7. Joseph Beuys
8. Ed Ruscha
9. Francis Bacon
10. Lucien Freud
11. Cy Twombly
12. Damien Hirst
13. Jeff Koons
List courtesy of: Thompson, Don. The $12 Million Stuffed Shark. New York: Palgrave Macmillan, 2008. 56.
14. Martin Kippenberger
15. Donald Judd
16. Willem de Kooning
17. Takashi Murakami
18. Peter Fischli/David Weiss
19. Richard Serra
20. Antoni Tapies
21. Maurizio Cattelan
22. Andreas Gursky
23. David Hockney
24. Richard Diebenkorn
25. Jean-Michel Basquiat
Twenty Five Major Contemporary Artists
1. Jasper Johns
2. Andy Warhol
3. Gerhard Richter
4. Bruce Nauman
5. Roy Lichtenstein
6. Robert Rauschenberg
7. Joseph Beuys
8. Ed Ruscha
9. Francis Bacon
10. Lucien Freud
11. Cy Twombly
12. Damien Hirst
13. Jeff Koons
List courtesy of: Thompson, Don. The $12 Million Stuffed Shark. New York: Palgrave Macmillan, 2008. 56.
Emphasis added.
14. Martin Kippenberger
15. Donald Judd
16.Willem de Kooning
17. Takashi Murakami
18. Peter Fischli/David Weiss
19. Richard Serra
20. Antoni Tapies
21. Maurizio Cattelan
22. Andreas Gursky
23. David Hockney
24. Richard Diebenkorn
25. Jean-Michel Basquiat
What crisis?
Losing Key Artists
o  2010 – Loses Hiroshi Sugimoto and the Willem de Kooning estate to Pace Gallery.
o  December 6, 2012 – Jeff Koons announces gallery show with David Zwirner Gallery.
o  December 13, 2012 – Damien Hirst and Gagosian Gallery part after 17 years.
o  December 14, 2012 – Yayoi Kusama announces split with Gagosian Gallery.
http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2012/12/19/1355927383710/Damien-Hirst-006.jpg
http://i.telegraph.co.uk/multimedia/archive/01437/jeff-koons-popeye_1437723c.jpg
Losing Key Artists
Jeff Koons
T: http://www.luxuo.com/wp-content/uploads/2013/02/Tulips-by-Jeff-Koons.jpg
B: http://thepandorian.com/wp-content/uploads/2009/11/new35_sm.jpg
Yayoi Kusama
T: http://www.friendsofart.net/static/images/art3/yayoi-kusama-infinity-nets-yellow.jpg
B: http://farm2.staticflickr.com/1436/538887901_79991743ff_o.jpg
Damien Hirst
T: http://artobserved.com/artimages/2012/11/Damien-Hirst-Shark.jpg
B: http://www.hurriyetdailynews.com/images/content/damien-hirst.jpg
Lawsuits
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http://i.usatoday.net/money/_photos/2012/01/24/Perelman-suit-is-billionaire-vsmillionaire-90SP7BJ-x-large.jpg
Billionaire (and Penn alumnus) Ron Perelman filed a suit in New York State Supreme Court against
Larry Gagosian on September 12, 2012. The suit alleges:
o  Gagosian acted in a conflict of interest by representing both the buyer and seller
o  Gagosian had a secret agreement with artist Jeff Koons that directed more sale profits to
the artist instead of Perelman
Two other recent lawsuits allege breach of fiduciary duty by Gagosian.
Succession
There is a legitimate question of who will take over the Gagosian Galleries when Gagosian
himself is no longer able to run the galleries.
http://si.wsj.net/public/resources/images/WK-AX331E_COVER_G_20110331234402.jpg
Actionable Proposal
Auction Houses
Highest
Auction
Revenues
Christie’s and Sotheby’s have
annual revenues much greater
than Gagosian.
Bonhams and Phillips have annual
revenues lower than Gagosian.
Lowest
Auction
Revenues
Sources
“2012 Power 100.” Art Review (2012): Online Periodical. Internet. Apr. 2013. Available: http://www.artreview100.com/2012-power-100/.
Barclays Wealth and Investment Management. Profit or Pleasure?: Exploring the Motivations Behind Treasure Trends. London: Barclays, 2012.
“Contact.” Gagosian Gallery (2013): Gallery Website. Internet. Apr. 2013. Available: http://www.gagosian.com/contact.
Corbett, Rachel. “Why Did Hirst & Co. Leave? A Look Back at Gagosian Artist Defections.” Blouin Artinfo (17 Dec. 2012): Online Periodical. Internet. Apr. 2013.
Available: http://blogs.artinfo.com/abovetheestimate/2012/12/17/why-did-hirst-co-leave-a-look-back-at-gagosian-artist-defections/.
Crow, Kelly. “The Larry Gagosian Effect.” TheWall Street Journal (1 Apr. 2011): Online Periodical. Internet. Apr. 2013. Available: http://online.wsj.com/article/
SB10001424052748703712504576232791179823226.html.
Dolmetsch, Chris. “Perelman, Gagosian Gallery Sue Each Other Over Art Sales.” Bloomberg (12 Sep. 2012): Online Periodical. Internet. Apr. 2013. Available: http://
www.bloomberg.com/news/2012-09-12/ronald-perelman-sued-by-gagosian-gallery-for-breach-of-contract.html.
Esman, Abigail R. “America’s Most Powerful Art Dealers.” Forbes (21 May 2012): Online Periodical. Internet. Apr. 2013. Available: http://www.forbes.com/sites/
michaelnoer/2012/05/03/americas-most-powerful-art-dealers/.
Ferro, Shane. “Larry Gagosian and Jan Cowles Reportedly Settle Lawsuit Over Lichtenstein Work.” Blouin Artinfo (8 Mar. 2013): Online Periodical. Internet. Apr. 2013.
Available: http://blogs.artinfo.com/artintheair/2013/03/08/larry-gagosian-and-jan-cowles-reportedly-settle-lawsuit-over-lichtenstein-work/.
Galenson, David W. “Artists and the Market: From Leonardo and Titian to Andy Warhol and Damien Hirst.” Conceptual Revolutions in Twentieth-Century Art. Cambridge,
MA: Cambridge University Press and the National Bureau of Economic Research, 2009. Chapter 15.
Galenson, David W. “Painting by Proxy: The Conceptual Artist as Manufacturer.” Conceptual Revolutions in Twentieth-Century Art. Cambridge, MA: Cambridge University
Press and the National Bureau of Economic Research, 2009. Chapter 9.
Halperin, Julie. “Larry Gagosian Testifies About His Business Practice – So What Do We Learn?” Blouin Artinfo (7 Nov. 2012): Online Periodical. Internet. 12 Mar. 2013.
Available: http://www.artinfo.com/print/node/839321.
Kennedy, Randy. “The Art of the Dealer.” T:The NewYork Times Style Magazine (21 Mar. 2013): Online Periodical. Internet. 25 Mar. 2013. Available: http://
tmagazine.blogs.nytimes.com/2013/03/21/the-art-of-the-dealer/.
Reyburn, Scott. “Christie’s Sales Climb 10% Led by Record Rothko Painting.” Bloomberg (16 Jan. 2013): Online Periodical. Internet. Apr. 2013. Available:
http://www.bloomberg.com/news/2013-01-17/christie-s-sales-climb-10-as-rothko-leads-contemporary-demand.html.
Thompson, Don. The $12 Million Stuffed Shark. New York: Palgrave Macmillan, 2008.