Christo & Jeanne Claude The Gates, Central Park, New York, 1979-2005
Source: www.christojeanneclaude.net/tg.html
It surprises me how many people do not view the production and sale of art as a business. Having taken Art History and studied the canon from the Renaissance to present I am not about to argue that Art is purely created for financial gain, however the belief that the creation and sale of art are not important enough to warrant status as business practices does not sit well with me. When Christo and Jeanne Claude installed The Gates, Central Park, New York, 1979-2005 in New York City’s Central Park neither artist collected any funds for the project but the instillation created income for hundreds, if not thousands of people. The construction crews who installed The Gates were paid for their labour, the design drawings were sold through galleries and auction houses, people even traveled to New York specifically to view the instillation creating an influx of tourism dollars.
Christo and Jeanne Claude are definitely a minority in this market as they do not produce artwork for personal financial gain. The majority of artists need to make a living and therefore are required to sell their work regardless of their artistic beliefs. To me it is astounding how many artists have never taken a business course or hired a financial advisor. The production and sale of art, like any other business, requires the tracking of inventory, the calculation of overhead costs, and the balancing of financial statement at the end of every year. This may be one of the major reasons why the art market has not reached business status in the eyes of the financial markets however a combination of respect is required for this to happen.
Perhaps the best way to explain this lack of respect is through my personal experience at the University of Victoria. When I was doing my BA in Art History I had many friends in the Business and Commerce program. Naturally I had many friends in the Fine Art department as well. To me it was surprising how my two sets of friends would talk about each others departments. My Business and Commerce friends looked at the Fine Arts department as a joke deeming them the “Hippies”. They could not understand why someone would get involved in a profession that produced the lowest average income per graduate. My Fine Art friends were the opposite. They called the Business and Commerce students the “Suits” and could not see the point in committing their lives to an industry bound by rules where you were most likely to sit in front of a computer for eight hours a day. The problem was that neither group saw the benefits of combining the two industries.
In any event the art world is becoming increasingly aware of the fact that understanding the art market requires a strong background in business and finance, while the business world is beginning to realize that the $30 billion art market is a worth investing in. Art market professionals and financial advisors are also acting upon this new awareness by working together to create art funds such as The Fine Art Fund, founded by former Christie’s employee Phillip Hoffman. In addition the last six years have seen the creation of more and more international art fairs and the birth of the “Art Consultant”. Art Business programs have been developed by major institutions such as Sotheby’s Institute of Art and York University. Sotheby’s Institute has focused on the study of the business of art such as marketing, valuation, and legal aspects while York has decided to offer a combination MBA and Art History degree.
The realization that Art and Business can co-exist is important to the future of both markets and the development of alternative asset management. With the recent developments of art funds, the production of art consultants, and the continued investment in Art Business education I am hoping that this trend will continue long into the future and breath new life into both the artistic and investment professions.
