Conflict of Interest- Auction Houses and Authenticators

[Eric]

Re: Conflict of Interest- Auction Houses and Authenticators

To be clear... Brad Wells authenticated items with an ASI sticker. Not items that ASI consigned. There is a huge difference.

But I don't see anywhere on your site where your authenticator Mr. Wells' relationship to ASI is disclosed to the public. Can you show me where it is?
Eric

[Eric]

Re: Conflict of Interest- Auction Houses and Authenticators

James-

I am sorry you are disappointed in the forum. As long are we are talking about our disappointments, I am disappointed neither you nor Global have answered some serious questions which I now post here for the 3rd time, and yes, I emailed to you.

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?

Thanks in advance for your answers. I'm sure everyone is looking forward to hearing them as well.
Eric

Eric

[ChrisCavalier]

Re: Conflict of Interest- Auction Houses and Authenticators

Just like every huge conspiracy theory that people try to conjure up, there is a usually a simple answer that will solve the alleged mystery. Brad Wells, at one time, owned a stake in Historic Auctions. However, earlier this year, he sold of his entire interest in the company and does not currently own any stake in the company.

Hello Mr. Brown,

Thank you for your above response and your candor regarding Brad Wells' ownership stake in Historic Auctions. I do have a follow-up question for Mr. Wells based on your response. However, please feel free to answer it if you feel so inclined.

When Historic launched it's inaugural auction in November of 2005, there were a number of members on our site who asked about the relationship between ASI and Historic. On November 29th of 2005 I received an email from Brad Wells (I still have the email) which included information Mr. Wells asked us to post on the site on his behalf. Here is the relevant information Mr. Wells sent us which we subsequently posted on the site:

ASI AND HISTORIC AUCTIONS

ASI AS YOU KNOW STANDS FOR AUTHENTIC SPORTS INC. ASI HAS A CLIENTAL BASE IN BASEBALL AND FOOTBALL AMOUNTING TO OVER 50 CLIENTS. ASI SPECIALIZES IN GAME USED AND SIGNED MEMORABILIA DIRECTLY FROM ITS ATHLETES. ALONG WITH THIS ASI HAS RECENTLY ADDED TWO OTHER UNIQUE SERVICES. THE TWO OF THEM BEING AUTHENTIC SPORTS MARKETING AND ASI AUTHENTICATION. THE MARKETING ASPECT LETS US DO MORE FOR OUR PLAYERS INCLUDING ENDORSEMENT AND ADVERTISING DEALS. OUR AUTHENTICATION PROGRAM ALLOWS US TO TAKE IN ITEMS FROM OUR COLLECTING CLIENTS AND MAKE SURE THERE COLLECTION IS COMPLETELY AUTHENTIC EVEN IF A PARTICULAR ITEM DID NOT ORIGINALLY COME DIRECTLY FROM US.

AS FOR HISTORIC AUCTIONS, A COMPLETELY SEPARATE ENTITY. HISTORIC AUCTIONS IS RUN BY JAMES BROWN AND IS OWNED BY SEVERAL ATHLETES AND INVESTORS. ASI DID PARTICIPATE WITH THE AUTHENTICATION OF THE GAME USED BASEBALL (WHICH IS NOTABLY THEIR EXPERTISE), AS WELL AS CONSIGNED A FEW ITEMS. THAT IS THE ONLY AFFILIATION WHATSOEVER.

Here is a link to the thread where we posted the information on behalf of Mr. Wells (the information is contained in post #14 of the thread):

http://www.gameuseduniverse.com/vb_f...light=historic

Basically, I'm trying to reconcile Mr. Wells' comment in November 2005 with what you have stated above regarding his ownership involvement with Historic (which you claim he sold in the beginning of 2006). I hope you don't mind me asking on the forum but since Mr. Wells asked us to post the original information above on the forum for our members I think it would be appropriate if we all received an explanation.

Thank you in advance for your reply.

Sincerely,
Christopher Cavalier

[Global Authentication]

Re: Conflict of Interest- Auction Houses and Authenticators

Apparantely their is some confusion about Global Authentication and its game used authentication program. Global Authentication had a verbal agreement to authenticate for Historic Auctions. However, because of our anti-self interest policy we have suspended the authentication and have not issued certificates for this auction. We have however agreed to independently examine the items at no charge when submitted to our coporate offices.

Steve

[mr.miracle]

Re: Conflict of Interest- Auction Houses and Authenticators

Is anyone besides me wondering if somebody from either Global or Historic Auctions will just offer a 100% straightforward answer to the few remanining questions that have been repeatedly asked over, and over again? Can we just get a simple straightforward answer that addresses the exact questions asked from somebody?

[sportscentury]

Re: Conflict of Interest- Auction Houses and Authenticators

To be clear... Brad Wells authenticated items with an ASI sticker. Not items that ASI consigned. There is a huge difference.

Hello,

I ask the following solely for clarification. I agree that this is a huge difference. Does this mean that an ASI sticker on an item means that it was obtained by and came from ASI *or* that ASI approved/authenticated it? This is important for me to know as I am sometimes offered ASI items and I had always thought that an item with an ASI sticker meant that it was obtained by ASI, a company which has stated, historically, that they obtain their items from players and major league employees.

Thanks for clarifying.

Reid

[sportscentury]

Re: Conflict of Interest- Auction Houses and Authenticators

What is the Conflict of Interest that is such a big issue on these forums?

Joel,

Eric's response to you is on point. I'd like to offer a more basic answer, though (that is, an alternative explanation). The problem involves the inherent potential for bias. If a person is authenticating an item that he also has a financial stake in, there is, by the nature of this situation, potential for bias in the authentication process. Bias in judgment may even occur nonconsciously--that is, the judge fully tries to remove from his mind the knowledge that he has a financial stake in the outcome of the authentication and fully believes that he has been successful in doing so. Still, the fact that the person has a financial stake in the item makes it impossible to know that the person has objectively authenticated the item in a completely unbiased way (again, even if he genuinely tried to do so and fully believes that he has done so). It is, as you point out, better if this dual relation (authenticator and stakeholder) is shared publicly, but that does not eliminate the inherent potential for bias in the authentication process.

I really enjoy your posts and you challenge forum members to more fully think through these issues. I hope that I have helped you to understand the conflict of interest and why collectors are concerned by it. If this post has not accomplished that goal, I fear that I won't be able to help you.

Reid

[trsent]

Re: Conflict of Interest- Auction Houses and Authenticators

Joel,

Eric's response to you is on point. I'd like to offer a more basic answer, though (that is, an alternative explanation). The problem involves the inherent potential for bias. If a person is authenticating an item that he also has a financial stake in, there is, by the nature of this situation, potential for bias in the authentication process. Bias in judgment may even occur nonconsciously--that is, the judge fully tries to remove from his mind the knowledge that he has a financial stake in the outcome of the authentication and fully believes that he has been successful in doing so. Still, the fact that the person has a financial stake in the item makes it impossible to know that the person has objectively authenticated the item in a completely unbiased way (again, even if he genuinely tried to do so and fully believes that he has done so). It is, as you point out, better if this dual relation (authenticator and stakeholder) is shared publicly, but that does not eliminate the inherent potential for bias in the authentication process.

I really enjoy your posts and you challenge forum members to more fully think through these issues. I hope that I have helped you to understand the conflict of interest and why collectors are concerned by it. If this post has not accomplished that goal, I fear that I won't be able to help you.

Reid

I put fear into Reid? Cool!

I understand your points,and I believe for the most part major auction houses do identify their items, but they will most likely not ever publish which items they outright own and certify and which are consignments.

Mastro and Grey Flannel may be examples of this, but I believe in both of these companies and I will sleep well at night knowing they will be fair on both ends.

As for other companies that I do not know as well, the bidders should use their own discretion as they should with any auction house.

[Eric]

Re: Conflict of Interest- Auction Houses and Authenticators

What is appropriate is something like MEARS does. On the MEARS wesbsite, they offer the following text. Get it out in the open and let the educated consumer decide.

Items at Auction
The following is a listing of Collectibles, which are owned by employees of MEARS and are currently being offered in the indicated auction (no listing indicates the absence of applicable items in the current auction cycle). MEARS encourages any collector wishing to receive an alternate opinion on the authenticity of any of these items to seek third party evaluation before bidding.

[sportscentury]

Re: Conflict of Interest- Auction Houses and Authenticators

If it is stated up front, I don't think it's a big problem for most folks (certainly not for me). I was just trying to chip away at a small portion of Joel's confusion. It's a tough job, but I guess someone's got to do it.

Reid

[Eric]

Re: Conflict of Interest- Auction Houses and Authenticators

I have been asked to post this on behalf of Steve Rocchi of Global...

Global initially agreed to allow Brad Wells to represent Global in authenticating baseball jerseys. However, after learning that a number of items in Historic's current auction were formerly owned by Brad through ASI, Global, as per their anti-self interest policy, decided against participating in Historic's auction authentication program. While some entities may allow authenticators to authenticate items they own, or have previously owned, it is simply against Global's policies. It is for that reason, and the potential confusion that was caused, that Global has offered to authenticate any item from the auction that is submitted to its corporate offices free of charge. While not a statement regarding any of the items in the auction, it should be noted that currently, unless submitted independently to Global, there will not be a certification from Global on any of the items in the current auction.

[CollectGU]

Re: Conflict of Interest- Auction Houses and Authenticators

So basically everything that has a Global authentication LOA in the catalogue will not come with Global paperwork. BUT, I can send whatever I buy into Global for a free authentication? That is fine as long as Jim offers a guarantee against Global's free authentication....The whole thing is definitely shady though....

[Eric]

Re: Conflict of Interest- Auction Houses and Authenticators

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

FYI, please see Christopher Cavalier's post below- he free authentication now only applies to bats

--------------------------------------------------------------------
Hello Everyone,

I spoke with Steve Rocchi and am posting the following information on his behalf. Notably, I will post what Steve relayed to me and then add a few of my own personal suggestions for members considering bidding in the auction. Let me start with what Steve told me so it is clearly delineated from my personal suggestions:

1) At the present time, Global Authentication will not be providing authentication services for game used jerseys. This will be announced on the Global website in the next few days.

2) Global will continue offering authentication services for game used bats. The game used bat authentications will be done by Mike Specht.

3) Regarding what will happen if a bat purchased in Historic Auctions does not pass the independent Global authentication process, that decision rests entirely with Historic Auction since Global has no business relationship with them.

Now for my suggestions (please note my suggestions are completely independent of what Steve communicated to me):

1) If you are interested in bidding on an item in Historic Auctions, make your evaluations based on the items themselves and the independent authentications provided by the individual authenticator (be it Brad Wells or whomever). That is, do not associate Global name with any of the authentications done for the auction.

2) If you do buy a game used bat in the auction, you will be able to have that bat independently evaluated by Global Authentications free of charge. However, if you feel Global's independent authentication is necessary for you to feel comfortable with the item, confirm any return policy with Historic Auctions before you make your purchase.

3) If you buy a game used jersey in the auction, you will only get a letter from Historic Auctions and the independent authenticator (Brad Wells or whomever). You should not expect anything else beyond that so take that into account when considering bidding on an item.

Please let me know if that makes it clear to everyone. One of the primary goals of the forum is to help members make informed decisions. I hope this post enables members to do just that.

Sincerely,
Christopher Cavalier
CEO - Game Used Universe