Mastro consignors not paid yet?

oldjudge · #1 06-27-2009, 09:48 AM

As I understand it there is more to this than has come out on the board so far. From what I have heard, the reason that Mastro Auctions has not yet paid all consignors is that they are owed significant amounts from certain well respected people in the hobby. When these funds come in the consignors can be paid. Without going into names, supposedly two people owed Mastro Auctions about $400,000 each. In at least one case I have heard the matter is being litigated.

autograf · #2 06-27-2009, 10:00 AM

hmm......that's a chunka change.......you'd think if someone owes you $400K, their 'well respected' status might be in jeopardy....

calvindog · #3 06-27-2009, 10:02 AM

I see. So consignors will have to wait to get paid until after two years of litigation, unrelated to the consignments which were sold and paid for, is completed? Nice.

barrysloate · #4 06-27-2009, 10:34 AM

I knew about this fact but I was told it in confidence. I agree with Jeff that Legendary can't wait until these matters are litigated before paying all their consignors. They have to find a way to get some cash quickly.

jmk59 · #5 06-27-2009, 01:32 PM

Quote:

Originally Posted by calvindog

I see. So consignors will have to wait to get paid until after two years of litigation, unrelated to the consignments which were sold and paid for, is completed? Nice.

Unless one of the people that owes them so much money were to declare bankruptcy. Then it wouldn't even be two years. The whole thing might cave in if it's teetery enough now.

illini805 · #6 06-27-2009, 02:14 PM

What is amazing to me is that there are still people that are probably consigning to them as we speak. Unreal.

slidekellyslide · #7 06-27-2009, 10:34 AM

Quote:

Originally Posted by oldjudge

As I understand it there is more to this than has come out on the board so far. From what I have heard, the reason that Mastro Auctions has not yet paid all consignors is that they are owed significant amounts from certain well respected people in the hobby. When these funds come in the consignors can be paid. Without going into names, supposedly two people owed Mastro Auctions about $400,000 each. In at least one case I have heard the matter is being litigated.

Did these 'well respected' people receive their winnings without paying?

barrysloate · #8 06-27-2009, 10:44 AM

Well, if Legendary didn't send the merchandise to these well respected collectors, then they wouldn't be having financial problems. Sounds like they apparently did.

calvindog · #9 06-27-2009, 11:22 AM

How about this for a business model:

1) consignors give cards to auction company;

2) cards are auctioned off;

3) cards are paid for by the winners;

4) fees are deducted;

5) remaining money is immediately sent to consignors; and

6) auction house fees are used to pay for auction house expenses.

I think this business model works pretty well.

Notice that I eliminated some of the more pesky, troubling steps such as shill bidding, price guarantees to certain consignors, self-dealing, knowledge of ceiling bids by auction house principals and employees, undisclosed restoration and altering, fake winning bids which give the appearance that a lot is sold when in fact it is not, permitting auction house principals and employees to place initial bids on an item during the extended bidding period, lies about checks being in the mail, and finally repeated haughty and false claims of innocence on public chat boards.

Rob D. · #10 06-27-2009, 11:31 AM

I notice your business model makes no mention of shipping costs and packing tape.

oldjudge · #11 06-27-2009, 11:56 AM

Barry, Jeff--Don't get me wrong. I'm not trying to defend what has been done. I'm just pointing some things out that have not been mentioned so far. I think what has happened is horrible and do not condone any of it. I also think it was a mistake for Legendary to start up before all consignors of Mastro were paid off. They would have a much better chance of success if this cloud were not hanging over them.

talkinbaseball · #12 06-27-2009, 02:26 PM

Leon:
I think oldjudge summed it up the best, they should've paid off everyone first before ever starting again.They would've gained alot of respect for that.
-john-

Peter_Spaeth · #13 06-27-2009, 12:01 PM

Jeff, who would consign to an auction house run that way?

Leon · #14 06-27-2009, 12:39 PM

It's kind of hard to compete when we have to use your business model. Scott and I have high level meetings planned to discuss.

calvindog · #15 06-27-2009, 01:11 PM

Quote:

Originally Posted by Peter_Spaeth

Jeff, who would consign to an auction house run that way?

Fair point, Peter. When fraud is being committed against the buyer in order to inflate auction prices, the sellers are happy. Unfortunately, when the auction house starts to rip off the sellers too, then auction houses with traditionally great consignments start to have auctions with just crap in them. And sometimes even the crap doesn't sell or gets pulled at the very end of the auction.