Da Vinci Dealings

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Yesterday I posted on the an Art Newspaper article about agency, with the main thrust of the article based upon a drawing by Da Vinci (see image)which sold for $7 million while the owner was informed it sold for $6 million.  The Art Newspaper has a very good article on the tangled web of deals and back room deals involved in the selling of the drawing. The sale was composed of many commissions and backroom deals, including an asking price of $10 million before settling on the $7 million figure.

It is a very interesting article and certainly shows how complicated and convoluted a private sale in the upper market can be, especially if there is less than ethical parties involved.

The Art Newspaper reports

The dispute has provided a remarkable insight into a string of commissions that were paid over the sale, one of which has now been ruled unlawful. John Martin, QC for the claimant, the Accidia Foundation, said the case sheds “a bright light on an extremely murky corner of the art world”.

Five years ago Accidia wanted to sell the work and Gheri Sackler, acting for Accidia, approached dealer Daniella Luxembourg. Sackler later received $500,000 from Accidia. Sackler said it was because of “over 20 years of work that I carried out on behalf of certain trusts”.

Luxembourg’s company re­ceived a $500,000 commission. Accidia assumed she would find the buyer, but her main role turned out to be reaching an agreement with Simon C. Dickinson Ltd. The gallery agreed on a “net return price” (price paid minus his commission) of $6m. The court was told by co-director Simon Dickinson that such arrangements are common among dealers. However, the court ruled that they are unlawful unless they are understood and approved by the seller.

Dickinson found the buyer, Nasser Kazeminy, chairman of NJK Holdings, a private American investment company. The initial asking price was $10m, but $7m was agreed.

To read the complete Art Newspaper article, click HERE.