Gehrig Jersey in REA

[Matt]

Interesting information on the 1938 Gehrig Jersey in REA:
http://blog.robertedwardauctions.com/?p=399

It was then graded A7 by Troy Kinunen, with A7 being the average grade of A9 and A5. It is now graded A7.

Troy R. Kinunen agrees to purchase the 1938 Lou Gehrig jersey for the purchase price of $240,000 from [CONSIGNOR’S NAME REDACTED] on behalf of a third party.

I must admit I am confused as the letter included at the top of the post, seems to indicate the jersey has already been sold to a 3rd party and I don't see where it says that 3rd party is now the consignor of record to REA. I'm also confused about if Kinunen is the consignor of the lot, how he was the one providing the A7 grade to the jersey.

[scmavl]

While I admittedly know little about auctions, is it saying that he will buy it for $240,000 unless bidding goes higher?

[MEARSAUCTIONS]

The 1938 Lou Gehrig jersey was purchased by the original consignor several years ago with a MEARS A9 grade.

For the 2011 Spring REA auction, the consignor decided to consign the jersey to REA.

As is our practice, I requested to review the jersey on behalf of REA auctions. The review was completed by MEARS evaluator Dave Grob.

Upon his review, which was the first time he inspected the jersey, his original opinion was to issue the grade MEARS A5.

Although members of the MEARS staff have given grades that differ in the past, historically only by 1/2 or one point, this was the first instance such a wide difference occurred.

I made the final decision to include both opinions, (Bushing 9, Grob 5), average the grade, and provide both opinions in the final letter.

Since the consignor originally bought the jersey as a 9, he felt he had exposure since the jersey was being sold as a 7.

The letter that Rob Lifson posted on REA's blog was the document I offered the consignor taking full responsibility for the sale.

Currently, the jersey is still consigned under the original consignors name/contract, but due to the descrepancy of the grade, I am now responsible for the sale, (loss or profit) of the jersey in a second contract between myself and consignor.

REA auctions just wanted to bring that information to light so that all potential bidders were aware of all facts.

Regards,

Troy R. Kinunen/MEARS

[Matt]

Still confused. Say the jersey sells at auction for $180k. Then, even though it was hammered to a winning bidder, you then buy it from the consignor at $240k and give it to the winning bidder? I guess the legal implications here of when the title changes hands is what has me confused. I understand what you are trying to do in principle and I solute REA for putting the cards on the table here.

[D. Bergin]

Are there that many 1938 Lou Gehrig jerseys out there, that it matters whether it's an A5, and A7 or an A9?

Or not being familiar with this part of the hobby.........does the grading have more to do with the taggings and the provenence, then whether or not Lou (or said consignor) slid into 2nd base with the uniform on?

[Shoeless Moe]

Originally Posted by D. Bergin

Are there that many 1938 Lou Gehrig jerseys out there, that it matters whether it's an A5, and A7 or an A9?

Or not being familiar with this part of the hobby.........does the grading have more to do with the taggings and the provenence, then whether or not Lou (or said consignor) slid into 2nd base with the uniform on?

I was thinking the exact same thing. Does a buyer, who has that kind of dough, really think of this is a A5 not an A8, who cares? It's a friggin' Lou Gehrig jersey. What are they gonna do, pass becuz of a grade, and wait around for an A7???

I too am confused by what Troy is saying by taking responsibility for it, what exactly does that mean? And if it means Troy promised the consigner a certain $ amount and then Troy gets more or less depending on the sale that sounds like what it is, he owns the jersey. Right?

[MEARSAUCTIONS]

The auction contract remains in the original consignors name. The consignor, due to the change of grade from A9 to A7, wanted to be protected from any loss that might occur due to the grade change.

In this instance I agreed to accept any and all responsibilty in the final sale price. This second agreement was between the consignor and myself, to protect him from any potential loss.

I haven't purchased the jersey or exchanged money. The final selling price will determine if any monies is owed by myself to the consignor.

The jersey will sell in the REA auction, the high bidder will get the jersey at the final selling price.

Any shortfalls will be paid by myself to the consignor, and profits will be paid by the consignor to myself, thus the secondary contract/agreement.

Regards, Troy R. Kinunen/MEARS