CIRCA Art Magazine - Autumn 2003 - The Art Market in New York: Some Thoughts on Venture Capitalism

If you're thinking about trying to get into a commercial gallery in New York - don't. The city is not the center of the art world - Berlin is. And New York commercial galleries are much like a visit to the dentist - you want it, you need it, it may even be beneficial for you in the end, but most likely it will be as painful as an extraction. First, these are my own thoughts on the Big Apple commercial art scene, and are therefore a subjective view, but let's start out by talking straight. The art gallery is first and foremost a business. In a commercial gallery, art is the product sold and the gallery's goal is to make a profit. The dealer's job is to maneuver the media, curators and collectors to achieve that goal. The greater the maneuvering skills, the better it is for the gallery.

In the New York commercial art scene there are really only two kinds of galleries - the purely commercial gallery and the for-profit rental. For this short article, I'll focus my thoughts on commercial galleries. However, I will comment just briefly on the for-profit rentals. In most of these kinds of galleries, it is the artist who loses. Those who run 'rental galleries' use the hopes of naïve artists. These galleries promise promotion, sales, exhibits, media coverage and immediate success. They take thousands of dollars for an exhibition and promotion, and apart from selling the artist a show, they sell very little and do even less.

The first type of gallery, and by far the most advantageous, is the true commercial gallery. First and foremost it engages in the selling of art work as its primary means of income. In this type of gallery the artist is 'represented'. The gallery then takes a commission on the sale of the artist's work - arbitrarily set at (not unlike the stock market) at least 50%. The difficulty with getting an exhibition in a quality commercial gallery in New York is that it is basically a closed shop. The majority of the galleries are unapproachable, and most of them will not accept works by new artists. In the rare case that they do, the artist is usually selected from within a circle of associates and friends - not by hawking slides and a portfolio.

There is not much of a chance that any 'unconnected' artist will be accepted at the majority of New York's commercial art galleries. And in reality it is nearly impossible due to concrete mathematics. On one hand, there are hundreds of thousands of artists who want to show in New York. On the other hand, the quality galleries number less than a hundred. If each gallery can handle approximately twelve artists, that would provide shows to about 1,200 artists every two years. If each of these artists knows, on average, three other artists, that's 3,600 artists who might get a shot, given their connections. Multiply the number of gallery owners, and their buyers' friends and relatives, you have thousands of people waiting just to meet with them. So, given all that, it is unlikely that the gallery would select some unknown person at random from slide submissions - but then you never know...

Then there are the players. The best way to meet these players is not in their galleries, but in their own playgrounds - like other people's openings, the Hamptons and Chelsea. The dealer/gallery owner is the most important player in this scene. (Yes, more than the artist.) As part of the marketing of their business, the New York dealer creates an aura of art knowledge around them. The more important the gallery owner can make the artwork seem, the greater its monetary value, the easier it is to sell and the greater the dealer's profit. This is a quintessential aspect to the art scene in general in New York.

There is also the museum curator and academic - both of whom can organize you into their next exhibition or article. These players are among the best to work with and will bring an artist the most in return. Galleries often work with institutions such as museums, and for the most part, this relationship is very good for artists. Examples of this abound in New York and throughout America, and openings for work in this arena are innumerable. Artists in Ireland are much too reticent to delve into this milieu, perhaps thinking that it is a gallery that will do more for them. I believe it's the opposite.

Another major player is the buyer/patron. This relationship is neither new nor uncommon. Galleries have been working with patrons since their origins and it is prevalent and acceptable in New York - there is the Frick, the Mellons, the Weisman. However, it is growing stronger in Europe, particularly in London. The new Saatchi Gallery's 40,000-square-foot space underlines the important influence of people who have grown from just being consumers and sponsors to gallery owners/institutions themselves. The contemporary trend of new money/new art sophistication comes from venture capitalists in the 1980s-'90s. The art world was on a high. Prices were rising and in the Financial Times U.S. Federal Reserve chairman Alan Greenspan was warning of "irrational exuberance" in the New York Stock Exchange (December 1996)...

There is nowhere else on earth like New York when it comes to the influence of the market on art - it is the birthplace of Pop Art! But this influence is not only about commercialism; it is also about reacting to the market. After the events of 11 September, there was a serious discussion within the New York art milieu about the relevance of art being created today. The world commercial-art scene has responded to this, as has the market, going back to an interest in what are 'measurable' skills, like painting and drawing. It is in this arena - the constant questioning of relevance by the market, in addition to the incredible pressure of the irrational exuberance of the art market - that the commercial galleries in New York live. Positive or negative? There are really two ways to see it. Firstly, every market and most of its production is dictated by demand - this is capitalism. Secondly, and on the positive side, this may broaden the market more. Does this mean that those in the art market are venture capitalists? Maybe.

For art venture capitalists the art market in America is as large and varied as the stock exchange - from old, antique, modern, contemporary, to craft, to high art, to low art, to popular culture, native art, different cultures' art. It is like going to a candy store and choosing a delight - chocolate, mints, hard candy, taffy. A lot of it has to do with packaging. Some people buy art because they love it; most buy it to feel good about themselves - it's a luxury-good item.

So where does Irish art fit in? In the 19 March, 2001 issue of Forbes Magazine, in an article called The Painting Irish, Joshua Levine wrote, "Since 1990, 20th-century Irish art, Dutch old masters and English sporting pictures have been the art market's three fastest-rising sectors, with the Irish climbing the most steeply."

"The Irish art market has grown faster than any other international art market worldwide...Each year sees unprecedented records smashing those of the previous year," reports David Britton, in the Irish Arts Review in September 2002. There are a handful of very serious Irish art buyers in the New York tri-state area, who are worth meeting if you can arrange an appointment. However, in there is no particular Irish art gallery, and this keeps the market very stagnant. It is important though to note that, outside of Ireland, America is the largest market for the Irish-art sector. This market is, however, primarily an Irish-American nostalgia market. This can be a lucrative area for some artists, both amateur and professional, but not one I recommend.

So those that actually make it in the New York art scene (and God, help you) are those who have the guts to go out there and push it in every single way. They're meeting people, they're talking to people, they're constantly on the go, they're meeting the right people, trying to mix it up, getting grants, exhibitions, getting things published about themselves. The frontier mentality that is historically part of American history is a personality trait that is encouraged, developed and bolstered just by being in the New York art scene. And it's not just the art scene. If you're an actor, a singer, a musician, a painter, or a poet - the same applies.

Venture capitalism is the process of funding; investing in an enterprise that offers the probability of profit along with the possibility of loss. It was, in reality, once known as risk capitalism and has great speculative aspects. Artists entering the capital of venture capitalism should beware. This means that as an artist one needs to build a career both outside and around New York - i.e., in the county you live with a gallery, in the international art market, at international art fairs, get catalogues and shows with internationally known art curators, dealers and gallery owners, and work with other artists around the world. It is like any other business - it's about relationships and contacts, building on those, developing them and taking advantage of every possibility you encounter. Then New York will find you. So if you're thinking about trying to get into a commercial gallery in New York, the best way to get represented is first not to try in New York. Also, stick to The Rules:

Escape from New York and go to Berlin (it's the center of the art world today anyway). In New York, even Manhattan isn't the center per se since the establishment of the gallery scene in Williamsburg (Brooklyn).

Èlay every card you have (that includes the green card, the female card, the young card, the black card, the extreme-living card and the gay/lesbian card - all of them at the same time, if possible).

If you're serious about meeting and greeting the galleries, get a Gallery Guide and research which gallery suits your work. Openings are always published, so go to them and you will meet people.

Megan Johnston (née Arney) is the Arts Centre Manager at Millennium Court Arts Centre in Portadown, and the Visual Arts Coordinator at the Irish Arts Centre in New York.

Article reproduced from CIRCA 105, Autumn 2003, pp. 39-41.

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