Conflict of Interest- Auction Houses and Authenticators

[Eric]

Hello everyone

I came across a blog written by New York daily news investigative sportswriter Michael O'Keeffe regarding authenticators writing letters on items they consign. This is a serious problem within the hobby and I applaud Dave Grob's stance.

In my opinion there is no room in this hobby for these blatant conflicts of interest.

Read below

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Category: Memorabilia

May 03, 2006

Memorabilia Market Needs Spring Cleaning
One of the biggest problems sports memorabilia collectors face is the often-cozy relationship between authentication services and auction houses. Most game-used items offered by auction houses are now accompanied by certificates from services attesting to their authenticity. But conflicts of interest come up too frequently when those so-called independent experts write certificates to pump up the very items they’ve consigned to auctions.

Dave Grob of Memorabilia Evaluation and Research Services, one of the hobby’s leading authentication services, says it’s time to bring in federal regulators.

“This industry has no standards or regulations,” says Grob, MEARS’ policy director. “There is no professional association of auction houses, dealers or authenticators to set professional or business ethics. I think the hobby is sorely missing that.”

Grob has published a call to arms on the MEARS Web site requesting collectors petition Congress to pass a law that would require authentication services and auction houses to let potential buyers know when they have a financial interest in an auction item.

MEARS started to notify consumers about its financial interest in auction offerings after its authenticator Dave Bushing was widely rapped for writing a certificate that claimed a bat found in former Yankee Tommy Henrich’s home was used by Joe DiMaggio during his famous 56-game hitting streak. Many collectors were outraged to learn that Bushing was also the consigner of the bat, which was purchased for $345,000 by Louisville Slugger manufacturer Hillerich & Bradsby.

Grob says he doesn’t believe the memorabilia business is corrupt and he’s not accusing anybody of illegal activity. But he does say his industry should throw open the windows and let in some fresh air. “It’s in the best interest of everybody if we are as transparent as possible,” Grob says. “If we don’t, we can lose our customer base.”

http://blogs.nydailynews.com/iteam/a...s/memorabilia/

[silverschmidts]

I think this is a great post and a great issue. But it goes way beyond the mere issue of conflict of interest. The overall issue is simply one of quality and credibility. Just look at the number of posts on this Forum from informed collectors every time a major auction house begins a new auction. Am I the only one who is astonished at how many bad items are obviously being offered by these so-called "high end" auction houses? An association along the lines suggested by Mr. Grob might instill some accountability in the industry and speed up the process of rooting out the operations that routinely offer bad goods and spotty customer service. To me, that would be the best thing that could happen to the hobby. --Steve

[Eric]

Point of clarification and a question

In the Daily News piece above, the Joe Dimaggio bat is mentioned- If my facts are correct, that was before the company was called MEARS- it was still SCDA.
When it became MEARS, Dave Grob instituted language where if an item with a MEARS letter was written by an authenticator with a financial interest in it, it would be so marked on the LOA AND it would be listed on the MEARS website.

When the Dimaggio bat mentioned was at auction, these rules hadn't yet been written.

My question is for Mike Specht who works with Global Authentication.

Mike, is there any language or rules about Global Authenticators writing letters on items they have or ever had financial interest in?

Thanks
Eric

[MSpecht]

Hi Eric--

In the area of authentication services I provide through the Global Authentications brand name, the proper person to speak to the policies of the company is the President of Global, Stephen Rocchi. As a personal standard, I have never authenticated any of my personal memorabilia myself under the Global brand name, and would not do so in the future.

Relative to authentications of game used baseball bats that I perform outside of Global, I do not authenticate any bats that I personally own beyond the fact that I will provide detailed information based on H & B factory records if applicable, and let the records speak for themselves. The records are what they are. I am in a position to share a large amount of information that is in the possession of a very few number of people, and I have done that openly in the past when I deal directly with a buyer, much as I do in response to questions on the Game Used Universe forums.

Thanks for the question.

Mike Jackitout7@aol.com

[EndzoneSports]

Eric:

At the moment, my memory is a bit fuzzy on the specifics, but a few months back another thread covered (in fairly extensive detail) the specifics of a few transactions regarding mid-80s Elway jerseys. One can search for and refer to that thread for the details.

If I remember correctly, one of these jerseys was a piece authenticated by Bernie Gurnay on behalf of Global Authenticators and consigned by Bernie who owned the jersey (in whole or part) to Historic Auctions' inaugural auction in Dec '05. The jersey sold for $4,600 (including 15% buyer's premium) to a Denver-area collector who occasionally frequents this forum.

From this, I would gather that Global had no such 'conflict of interest' policy in place, at least at that time.

Regards,

[Eric]

I believe this is the thread you're talking about

http://www.gameuseduniverse.com/vb_f...ighlight=elway

[EndzoneSports]

That's the one. Thanks Eric!

[ChrisCavalier]

In the area of authentication services I provide through the Global Authentications brand name, the proper person to speak to the policies of the company is the President of Global, Stephen Rocchi. As a personal standard, I have never authenticated any of my personal memorabilia myself under the Global brand name, and would not do so in the future.

Hello Everyone,

I spoke with Steve Rocchi today and he asked me to post something on his behalf. Steve is traveling today without internet access and said he will post something himself directly tomorrow when he is back in the office.

Regarding any potential 'conflict of interest', Steve said Global does have a policy in that regard which he will clarify tomorrow (Steve is obviously the most qualified person to answer that question).

Regarding the items in the current Historic Auction, Global will NOT be putting their name on any of the certs. While Global was initially asked to provide authentications for that auction, Global decided it was not in their best interest to do so at this time. However, Steve also said that, given any confusion that may have been caused, if any individual who buys an item from the current Historic Auction would like Global to provide additional authentication services on an item purchased from the auction, Steve has offered to provide the service for that item FREE if submitted directly to Global.

Once again, I am posting this information on Steve's behalf and Steve will post further information tomorrow when he is back in the office. Any further questions should probably be asked directly of Steve.

Sincerely,
Christopher Cavalier
CEO - Game Used Universe

[Eric]

I have received many emails about this topic. I do not have the answer, so I thought I'd lay out the questions I'm getting-

Forum users are questioning-

Did Global sign off on these items in Historic Auctions already and now are deciding not to offer certificates? If so, why?

Or did Historic Auctions incorrectly list in numerous lots that they have been authenticated by Global? How can that be a misunderstanding? Were there authentication certificates or not?

I have gotten many angry emails from people who feel like there's something odd going on here, and before they take out their wallets they'd like to know what the heck is going on.

Eric

[Global Authentication]

Effective immediately, Global Authentication is revamping its game used division. It is in our best interest to suspend all authentications until these upgrades are completed. We are going offer free authentication for any items purchased in the Historic Auctions. Please look to our website for future information.

We hope this information clears up any questions anyone may have on this forum.

Sincerely,

Stephen Rocchi
President Global Authentications