Leibovitz pawns her life's work to raise $16m

Portrait photographer forced to mortgage rights to her art as financial turmoil takes its toll

Pity the struggling rich who find that their swaggering homes no longer have the value necessary to help them raise more cash when suddenly they need it. But for some there is salvation. There are certain institutions out there interested in taking something else as collateral for new loans: art.

You are particularly blessed if you not only collect important art – it has to be good stuff, not your great aunt's oils languishing in the attic – but are the creator of it. Just ask Annie Leibovitz, the portrait photographer whose clients have included Walt Disney and Vanity Fair, but who has apparently hit the financial shoals.

She may be one of the most successful commercial photographers of her time but, over the past several months, Leibovitz has reportedly gone to an institution called Art Capital in Manhattan for loans totalling no less than $15.5m (£10.8m). Whatever outstanding bills she has, they are apparently considerable.

It is the nature of her loan agreement that will get the art world all a-twitter, however. For sure, she began by doing the traditional thing, offering properties as collateral, including her country home in upstate New York as well as town houses in Greenwich Village. But then she was forced to mortgage something else – at least for the life of the loans – all the rights to her photographs, those already taken and even those she will take in the future.

The loans-for-art market is not one that is widely known about beyond tight circles. "It's very discreet," Ian Peck, co-owner of Art Capital, told The New York Times, which published an exposé yesterday. Another prominent New Yorker who has resorted to pawning his artworks is the film director and property developer Julian Schnabel, who has stretched his own resources building a gaudy-pink apartment complex in the West Village known as Palazzo Chupi.

That art – some art, at least – is retaining its value where other commodities, including bricks and mortar, are not, has been confirmed, at least so far, by this week's auction in Paris of the Yves Saint Laurent collection. Takings on the first night were €206m (£183m). Elsewhere, however, there are fears that sudden dispersals of collections by cash-hungry galleries and museums could depress values in this market also.

For now, though, business is good at Art Capital, which expects to make art-secured loans of about $120m this year, compared with $80m last year. It has rivals who also report good times. At Art Finance Partners, also in Manhattan, there has been a 40 per jump in loan requests in the past six months.

Think of the art market and revered names such as Sotheby's and Christies come up. But where Leibovitz and Mr Schnabel have chosen to tread is a good deal less genteel. These institutions are entirely legitimate, but some might call them loan sharks, or if not that glorified pawn shops. Art Capital, for example, will make loans of $500,000 or more at interest rates of between 6 per cent and 16 per cent.

Most important to remember is this: default on your payments and those precious masterpieces – or, in the case of Leibovitz, those famous photographs (including, one assumes, some of the Queen) – will no longer belong to you. Indeed, the offices of Art Capital are hung with canvasses that clients have been forced to surrender and are now subject to sale. A Rubens here, two Warhols there and, around the corner, one Rodriguez.

Reporting Leibovitz's dealings with Art Capital, The New York Times quotes loan documents filed at the City Register's Office saying that she had signed over "copyrights ... photographic negatives ... contract rights" existing or to be created in the future, to secure loans first of $5m last autumn and then a second $10.5m tranche in December. The money will in part go towards consolidating existing mortgages on her city homes.

The news of her dealings appeared to confirm rumours that Leibovitz was on the financial ropes.

Recent stresses for the photographer have included huge costs associated with an elaborate studio in Chelsea, Manhattan, that she has since relinquished, and the death of her former partner, Susan Sontag, and the responsibilities of raising her children. She has also had to deal with lawsuits filed against her by a lighting company and stylist for about $700,000.

Artists on the breadline

Rembrandt van Rijn

The Dutch master declared himself bankrupt in 1656, when he was left with enormous debts after years of living beyond his means. He was forced to sell his house in Amsterdam and move to a more modest part of the city and his family opened an art shop to fend off his creditors. During these dark years, he painted numerous self portraits in which he depicted himself as a man racked by sadness and pain.

James Whistler

After the critic John Ruskin publicly denounced Whistler's Nocturne in Black and Gold in 1877, the artist sued him for libel. He won the action but was only awarded one farthing in compensation, a decision that appeared to vindicate Ruskin. The court costs combined with the damage done to Whistler's reputation – which drove away potential patrons – was enough to ruin him financially and he declared himself bankrupt in 1879, selling his London house and moving to Venice.

Lionel Bart

At the peak of his success, the composer, below, owned five houses, including a 27-room castle in Tangier and a flat in New York. However, he was forced to sell them all after signing away the rights to Oliver!, his most popular work, a decision which is said to have cost him up to £100m in lost earnings. The composer declared himself bankrupt in 1972 and slid into depression and alcoholism but slowly rebuilt his fortune during the 1990s through other royalties. He once said: "I hated money. I had no respect for it. My attitude was to spend it as I got it."

Arts and Entertainment
The new Fondation Louis Vuitton in the Jardin d'Acclimatation in Paris
architecture

Arts and Entertainment
Richard E Grant as Simon Bricker and Elizabeth McGovern as Cora, Countess of Grantham
Downton

Arts and Entertainment
Lynda Bellingham stars in her last Oxo advert with on-screen husband Michael Redfern

tv
Arts and Entertainment
Hunger Games actress Jena Malone has been rumoured to be playing a female Robin in Batman v Superman

film
Arts and Entertainment
Clara takes the lead in 'Flatline' while the Doctor remains in the Tardis
tvReview: The 'Impossible Girl' earns some companion stripes... but she’s still annoying in 'Dr Who, Flatline'
PROMOTED VIDEO
Arts and Entertainment
Sean Harris in 'The Goob' film photocall, at the Venice International Film Festival 2014
filmThe Bafta-winner talks Hollywood, being branded a psycho, and how Streisand is his true inspiration
Arts and Entertainment
X Factor contestant Fleur East
tvReview: Some lacklustre performances - but the usual frontrunners continue to excel
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
Richard Tuttle's installation in the Turbine Hall at the Tate Modern
artAs two major London galleries put textiles in the spotlight, the poor relation of the creative world is getting recognition it deserves
Arts and Entertainment
Hunger Games actress Jena Malone has been rumoured to be playing a female Robin in Batman v Superman
film
Arts and Entertainment
On top of the world: Actress Cate Blanchett and author Richard Flanagan
artsRichard Flanagan's Man Booker win has put paid to the myth that antipodean artists lack culture
Arts and Entertainment
The Everyman, revamped by Haworth Tompkins
architectureIt beats strong shortlist that included the Shard, the Library of Birmingham, and the London Aquatics Centre
Arts and Entertainment
Justice is served: Robert Downey Jr, Vincent D’Onofrio, Jeremy Strong and Robert Duvall in ‘The Judge’

Film

Arts and Entertainment
Clive Owen (centre) in 'The Knick'

TV

Arts and Entertainment
J.K. Simmons , left, and Miles Teller in a scene from

Film

Arts and Entertainment
Team Tenacity pitch their fetching solar powered, mobile phone charging, heated, flashy jacket
tvReview: No one was safe as Lord Sugar shook things up
News
Owen said he finds films boring but Tom Hanks managed to hold his attention in Forrest Gump
arts
Arts and Entertainment
Bono and Apple CEO Tim Cook announced U2's surprise new album at the iPhone 6 launch
Music Album is set to enter UK top 40 at lowest chart position in 30 years
Arts and Entertainment
The Michael McIntyre Chat Show airs its first episode on Monday 10 March 2014
Comedy
Arts and Entertainment

Review

These heroes in a half shell should have been left in hibernation
Arts and Entertainment
Richard Flanagan with his novel, The Narrow Road to the Deep North
books'The Narrow Road to the Deep North' sees the writer become the third Australian to win the accolade
Arts and Entertainment
New diva of drama: Kristin Scott Thomas as Electra
theatre
Arts and Entertainment
TV
Arts and Entertainment
Daenerys Targaryen, played by Emilia Clarke, faces new problems

Sek, k'athjilari! (That’s “yes, definitely” to non-native speakers).

TV
Arts and Entertainment
Polly Morgan

art
Arts and Entertainment
The kid: (from left) Oona, Geraldine, Charlie and Eugene Chaplin

film
Arts and Entertainment
The Banksy image in Folkestone before it was vandalised

art
Arts and Entertainment

Review: Series 5, episode 4 Downton Abbey
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

ES Rentals

    Independent Dating
    and  

    By clicking 'Search' you
    are agreeing to our
    Terms of Use.

    Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

    'They poured water on, then electrified me...'

    If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
    James Wharton: The former Guard now fighting discrimination against gay soldiers

    The former Guard now fighting discrimination against gay soldiers

    Life after the Army has brought new battles for the LGBT activist James Wharton
    Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

    Panic over Ebola threatens to infect the midterms

    Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
    Premier League coaches join the RSC to swap the tricks of their trades

    Darling, you were fabulous! But offside...

    Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
    How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

    How to dress with authority

    Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
    New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

    New book on Ian Curtis sheds fresh light on the life of the late singer

    'Joy Division were making art... Ian was for real' says author Jon Savage
    Sean Harris: A rare interview with British acting's secret weapon

    Sean Harris: A rare interview with British acting's secret weapon

    The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
    Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

    Tim Minchin interview

    For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
    Boris Johnson's boozing won't win the puritan vote

    Boris's boozing won't win the puritan vote

    Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
    Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

    Tim Wheeler: Alzheimer's, memories and my dad

    Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album
    Hugh Bonneville & Peter James: 'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'

    How We Met: Hugh Bonneville & Peter James

    'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'
    Bill Granger recipes: Our chef's heavenly crab dishes don't need hours of preparation

    Bill Granger's heavenly crab recipes

    Scared off by the strain of shelling a crab? Let a fishmonger do the hard work so you can focus on getting the flavours right
    Radamel Falcao: How faith and love drive the Colombian to glory

    Radamel Falcao: How faith and love drive the Colombian to glory

    After a remarkable conversion from reckless defender to prolific striker, Monaco's ace says he wants to make his loan deal at Old Trafford permanent
    Terry Venables: Premier League managers must not be allowed to dictate who plays and who does not play for England

    Terry Venables column

    Premier League managers must not be allowed to dictate who plays and who does not play for England
    The Inside Word: Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past

    Michael Calvin's Inside Word

    Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past