THE ART of the DEAL Growth Was Strongest at 10%
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TUESDAY, 13 NOVEMBER 2018 dealers at the very highest end (sales over $50 million), sales THE ART OF THE DEAL growth was strongest at 10%. No matter the market it seems, the luxury buyers we need to attract want quality trophy assets and that's where returns are made for investors. We don't have to look far for an example. Modigliani may never have risen to Group 1 heights when racing in John Magnier's colours but little did we know, Modigliani still had a win in him for John. John Magnier bought his masterpiece Nu CouchJ (Sur Le C^tJ Gauche) for $26.9 million in 2003, stared lovingly at it on his wall for 15 years, and then sold it this year for $157.2 million. Even No Nay Never's stud fee has not appreciated as much. Who knew that the best pinhook of 2018 actually took place in Sotheby's? In uncertain times for racing, what art can teach us is where to go to attract further global demand for our luxury product. Unsurprisingly, for fresh investment to drive growth, we need to go east. In 2006, Asia made up less than 5% of global buyers. >Girl With Balloon= transformed into >Love is in the Bin= | Getty Images Today, Sotheby's report that Asian buyers account for more than 35% of their global sales by value, and the amount they by Jack Cantillon spend has increased by 50% in the past five years alone. Think of "Fair warning--are you sure madam? Last time then. Sold on the opportunity that presents for our industry. A concerted the telephone for ,860,000." effort to attract just some of these investors would have a A Galileo (Ire) yearling? No--Girl With Balloon, a spray paint transformative effect on the limited buying bench in racing at and acrylic on canvas, mounted on board, in the artist's frame. present. Tattersalls Book 1 had just 21 buyers pay over ,1m The highest price ever achieved for a work by the famed, if aggregate for horses. Cont. p2 anonymous, graffiti artist Banksy, at Sotheby's Contemporary Art Auction last month. What can horse racing learn from the booming global art market which reached record sales of $63.7 IN TDN AMERICA TODAY billion in 2017 (up 12% from 2016), a figure that is set to be TWO CLASSIC WINNERS MAKE INGORDO HUNGRY FOR surpassed in 2018? THE NEXT If you're investing in art, as we saw in our 2018 yearling Chris McGrath chats with David Ingordo about his recent market--if you want a return, invest in quality. In 2017, dealers achievements, including selecting GI Breeders’ Cup Classic hero with a turnover below $500,000 saw an average 4% decline in Accelerate (Lookin At Lucky) as a yearling. Click or tap here to sales, the second year of losses in this segment, while for go straight to TDN America. TDN EUROPE • PAGE 2 OF 10 • THETDN.COM TUESDAY • 13 NOVEMBER 2018 The physical of a horse will in most cases always trump the pedigree and yet we still use the opaque process of a trusted agent relaying on hastily scribbled notes and perhaps a photo to The Art of the Deal Cont. from p1 convey the physique of an investment to an absent and often inexperienced buyer. This doesn't allow the industry to have the Traditionally, the portability of art is transparency it needs to attract new first-time horse buyers. We an inherent advantage to attracting need to use digital tools readily available to encourage further Asian investors--it's quite nice to view trade. However, we are making tentative steps in the right a Ai Weiwei sculpture in your direction. Tattersalls used Sirecam for each lot in Book 1 and has hometown of Shanghai or Singapore if added extra camera angles at most sales, transforming the you're considering paying ,50m for it viewing experience for those online. Inglis having high quality in London or New York next month. A video footage of selling The Autumn Sun as a yearling gave them quick glance at the Sotheby's or a wonderful ready-made ad to use right after the Caulfield Christies YouTube channels shows Guineas. At the recent Goffs Orby yearling sale, our own farm, Jack Cantillon auctions in multiple languages and Tinnakill House, had a bidder in Kuwait vet the horse in fevered cities across the globe with the same anticipation as he liked what he saw on a video tweeted by painting--imagine having the chance to bring Lady Aurelia to Sha Goffs thousands of miles away. Tin and Flemington and more before her sale. In a period of relentless international growth, a key factor for We now have the tools to make geographical boundaries the art world has been its ability to utilise persuasive technology irrelevant--like art, let's start to use them. It's long overdue that to influence human behaviour. Through consistent investment in horses at premier sales should have videos or at least fan engagement, art has become such a beloved subject on standardised photographs as part of the cataloguing process. If Instagram that #art was the fifth most popular hashtag on the we spend millions on X-rays each year, what is one professional app last year. shot to advertise the horse to a global marketplace? Cont. p3 TDN EUROPE • PAGE 3 OF 10 • THETDN.COM TUESDAY • 13 NOVEMBER 2018 In a period of relentless international growth, a key factor for the art world has been its ability to utilise persuasive technology to influence human behaviour. Jack Cantillon Vice President, International Operations Gary King Twitter: @garykingTDN [email protected] + 1.732.320.0975 The Art of the Deal Cont. International Editor Kelsey Riley Dealers increasingly report making sales to collectors whose Twitter: @kelseynrileyTDN interest has been piqued by seeing work on the app. As Marta [email protected] Gnyp, art historian, has reasoned "the cross-pollination of celebrity culture, fashion and glamour has given contemporary European Editor art events in general, and art events in particular, a promise of Emma Berry enjoyment, excitement and the promise of exclusivity." That Twitter: @collingsberry sounds like a demand our sport can satisfy doesn't it? This [email protected] cross-pollination has pushed art into the realm of a must-have Associate International Editor for the super wealthy in the US. A survey of high net worth Heather Anderson individuals in the US by UBS and Arts Economics in 2017 Twitter: @HLAndersonTDN revealed that 35% were active in the art and collectibles market- -supporting art at all levels. If you don't have a Basquiat on your Marketing Manager wall, did you even make a billion dollars last year? Perhaps one Alayna Cullen day we can make a Snitzel racing at the Dubai Carnival a similar Twitter: @AlaynaCullen aspiration too for tomorrow's bourgeoisie. While admittedly a [email protected] horse doesn't have the longevity of a painting we've got Contributing Editor advantages we should shout more about--the art market should Alan Carasso look jealousy at the incredible feat of authentication our general Twitter: @EquinealTDN stud books provide through our established families trees over centuries and the value of the provenance that comes from the Cafe Racing breeding track record of our best studs that is publicly available Sean Cronin to all in a brief look at who is breeding our champions. We need Tom Frary to understand and promote the intoxicating cocktail our sport [email protected] can provide to the super wealthy and then the pie can be grown Irish Correspondent to help racing professionals at all levels. Daithi Harvey We can't just stare wondrously at the masterpieces, concentrating on the million-dollar yearling windfalls and Regular Columnists forgetting the problem of the five grand RNAs. Damien Hirst had Andrew Caulfield his assistants produce countless copies of his famous "spot John Berry paintings" in order to meet perceived demand of a overheating Kevin Blake marketplace. As of 2017, these pieces numbered 1,435 (even Tom Peacock the Return of Mares can't match that) and have plummeted in value due to overproduction. Cont. p4 TDN EUROPE • PAGE 4 OF 10 • THETDN.COM TUESDAY • 13 NOVEMBER 2018 selling overproduced "fast art" to satisfy greed for profit not love of the craft. This year's sales provide a reminder of what we're doing right-- breeding elite quality Thoroughbreds which are serving an increasing growing global demand. If we learn from the similar art industry, using the technology available to us, we have a chance to grow that even further. The art industry can also serve as a reminder of where our downfall lies--overproduction and a product that doesn't have sufficient demand to meet it. Girl With Balloon captures a girl letting a balloon slip through her hands, let's not let our industry slip through ours through inaction. What do you think? Get in touch: [email protected] or >Horse= by Ai Weiwei at art fair Art Basel in Hong Kong | Getty Images @JackCantillon The Art of the Deal Cont. Luxury products don't survive overproduction, just ask the © Copyright Thoroughbred Daily News. buyer of our Banksy. The mercurial artist had secretly installed a This newspaper may not be reproduced in any form or by any shredder within the ornate frame. Upon the gavel falling, it was means, electronic or mechanical, without prior written permission switched on and the ,1-million plus price piece (as a result of a of the copyright owner, MediaVista.