Life at a High Profile Gallery

David Segal of the NY Times recently ran an article in the business section on high profile gallery owner and impresario Larry Gagosian (on the left in the image). The article discusses Gagosian's business philosophy, his growth within the industry, his representation of contemporary artists (the article alludes that he stole the artists from other galleries) and how he is handling business in the current economic environment. It is a rather legnthy profile, but well worth reading.

Segal states His business is the ultimate black-box operation, a never-ending and international swirl of cash and canvas that is built for maximum secrecy. What is certain is that his overhead is a multiple of his competitors’. Also certain is that the prices of work by the young artists he has been luring into his galleries — prices that have doubled or tripled in some cases, courtesy of his imprimatur — are falling like bank stocks. Worst of all, the days of the $75 million private deal have ground to a halt.

Segal conintues But Mr. Gagosian, who wouldn’t return calls for this article, is nothing if not a master of financial brinkmanship, and he has survived numerous death-watch experiences over the years. And there are, it turns out, curators and advisers who believe that he will fare just fine in the coming years, as legions of vaguely embarrassed collectors look to raise needed money, as privately as possible.Even so, Mr. Gagosian is quietly bracing for the worst. A few months ago, he sent an e-mail ultimatum to staff members that was quickly a blog sensation, threatening to fire anyone who wasn’t moving the product. “The luxury of carrying under-performing employees,” he wrote, “is now a thing of the past.”

Segal states LARRY GAGOSIAN wasn’t the first dealer to realize that art was a commodity, and that for the right price anyone would part with anything. But he brought a brazenness to this once-genteel realm that left rivals speechless. With a Rolodex filled with hedge fund investors, Russian oligarchs and real estate magnates, he would pitch paintings that weren’t even for sale, knowing that if the offer were large enough, the owner would thank him.

In another section Segal reorts In many instances, Mr. Gagosian is effecting trades in which none of the parties know the identity of anyone else. Collectors say they typically receive calls from him saying something like, “If you want that Francis Bacon, you need to give me your Lichtenstein and the two Basquiats.” Who is on the other side of that trade, or whether the Bacon came from Mr. Gagosian’s private stash, is never discussed.

His database, Mr. Cramer says, “is a Fort Knox of information.”

Mr. Gagosian, in short, is a one-man Nasdaq, an exchange where he helps set the price, not to mention the size of his commission. Unlike an actual stock exchange, though, this one is always open for business, and when it doesn’t get expected trades, it gets loud and profane. Mr. Gagosian has been known to pepper art consultants contemplating the terms of a deal with 20 calls in a single day, and if the answer isn’t the one he wants, you’re advised to keep the children away from the phone.

The article is an interesting read and a good opportunity to look into the lifestyle and operations of a large, and succsefull contemporary art gallery. Click HERE to read the NY Times article.