Goodman has sold his interest in the franchise which he has controlled since November 2009 to a group of other investors, already largely involved in the operation.
However, he is expected to retain an interest in the old group as chairman of the Joel's Melbourne and Sydney Bay East operation.
The sale was despite his self proclaimed long standing ambition to own what had long been regarded as Australia's most prestigious fine art auction operation.
He is said to have nurtured this ambition from a brief spell working in the global auction house's now defunct London Belgravia operation specialising in Victoriana 30 years ago.
Details of the costs of his purchase - and the present sale - of the franchise have not been published. While the nominal purchase price may have been modest, it must have come with residual charges on the sales made in Australia..
The move followed declining sales figures brought on by fierce competition and a reluctance of vendors to consign, brought on by fears that discretionary purchasing had been shaken by the global financial crisis.
Sotheby's Australia was also required to distance itself prominently from Sotheby's International by statements that it was a disconnected entity on its web site.
Vendors and buyers were not then automatically assured that the New York based operation would stand by the Australian operation in the event of any financial traumas.
The industry was surprised that Sotheby's International would part with its name locally, especially after it had done so in Canada where the transfer had ultimately prompted a financial rescue.
As Christie's had done four years ago, the move watering down Australian interests could be read in terms of the relatively modest nature of the Australian market.
While the sum paid for the operation was reportedly insignificant, the deal also presumably came with regular fees payable to Sotheby's world wide.
The viability/profitability of the operation was also challenged by Bonhams of London which held indirectly a small minority equity in the franchise vehicle, Second East Auction Holdings Pty Ltd.
Goodman's acquisition of the franchise was not taken kindly by Robert Brooks, chairman of Bonhams of the UK, as it gave his company an interest in his global competition.
If only modestly, Bonhams was helping fund the Sotheby's name through holding a locked-in equity in the franchisee. It is a holding of course which could also be troublesome if Bonhams wanted it to be.
The franchise was also taken on in the expectation that the franchise would secure the collections put together by Warren and Cheryl Anderson, and held by their family company, Owston Nominees.
Goodman had physical possession of the collection and had catalogued it, but an unhappy Brooks was not to let that be.
He helped force a tender, and was the winner, securing in the process a $15 million dispersal which gave Bonhams a big break in the Australian market which it determined to expand as part of a strategy of building up a global auction house, formerly envisaged as a partnership with Goodman.
The surprising acceptance and triumphant sale of the Andre and Cecile Fink collection of French antiques several months later, despite the collection's multiple exposure in the Australian saleroom gave Bonhams a heightened standing in the market place.
Although Goodman was reputed to have paid no more than $3 million for the operation, inevitable cost cutting and the reduction in former Sotheby's and Goodman staff looking for different pastures inevitably made it a much reduced force on the Australian auction scene.
The majority of departures, led by James Hendy went to the new Bonhams Australia where Hendy became Chief Executive Officer.
The former chairman of Sotheby's Australia, Justin Miller, did not pursue another appointment in the industry although he would have had no difficulty in securing one, with years of outstanding experience in it.
The Sotheby's head of art, Georgina Pemberton, secured a job running Thomas Agnew's new contemporary art gallery in London while another art specialist, David Cook secured a plum job looking after the Packer family collection.
The classic car specialists walked to Bonhams which has the strongest position in the admittedly presently soft market that exists in big boys' toys,
It was an interest in cars that joined Goodman and Brooks at the hip as it were in Australia, in the 1990s after a friendship which had developed out of this several years earlier.
Goodman's own knock about Aussie persona may also have been difficult to accommodate to the new Sotheby's operation although he applied all the ethical standings, such as rostrum disclosure of sales made or not made, of Sotheby's International.
Jewellery remained tough although much improved in the final sale of 2010 in December. The merged operations also carried heavy costs which were difficult to reduce and were commented upon by a statement in December to the NZ Stock Exchange by Mowbray Holdings, a shareholder listed on the New Zealand Stock Exchange.
Tim Klingender who had built up the Aboriginal art market at Sotheby's went to Bonhams as a consultant taking others in the Sotheby's Aboriginal art department with him.
The 65 per cent owned Joel’s operation prospered in a buoyant market for collectables but the turnover ranked low in the market context.
Five investors now have a 20 per cent equity each in Second East Auction Holdings Pty Ltd, holder of the Sotheby’s Australia licence holder. All are directors.
The investors include former Vice Chairman, Geoffrey Smith, who is now chairman of SEAH and Sam Cullen, who was a former director and equity holder in the Goodman operation over many years.
Another investor is Gary Singer, who remains CEO of Sotheby’s Australia.
Since commencing the role in early 2010, he was stated in the Friday announcement of the deal to have overseen the smooth transition and management of Sotheby’s Australia on a daily basis.
In the announcement, which came at the low voltage news hour of five PM on new year's eve, Sotheby's Australia described Singer as a solicitor, with many years experience in running a national legal firm.
For many years Singer was a property developer and restaurateur. Singer was Deputy Lord Mayor of Melbourne from 2004 to 2008.
" An internationally renowned authority on Australian art, Smith is highly respected by art collectors, investors and professionals, and manages the estates of some of the highest profile Australian artists," the announcement said..
"He has had an extraordinary career in both the academic and commercial art spheres." He has also been a party to a separation claim in the courts which could net him many millions of dollars from the business he claims to have generated at the gallery in the name of his former partner, Rob Gould.
“It is a great honour to assume custodianship of the most revered global brand in fine art, jewellery, and decorative arts,” said Smith.
“On behalf of the company, I give our clients and stakeholders a firm commitment that Sotheby’s Australia will continue to offer works of the highest calibre and provide independent advice and unparalleled knowledge that is expected from one of the world’s premium brands.”
Majority shareholder, Tim Goodman, no longer holds equity in the company and has retired as Chairman.
"After almost forty years as a respected art auctioneer and businessman, Mr Goodman is retiring to pursue other interests," the statement read.
Sotheby’s Australia will continue to contract Mr Goodman as an advisor and auctioneer.
“Purchasing the Sotheby’s licence represented a lifelong ambition and I have thoroughly enjoyed furthering its legacy in Australia,” Goodman was quoted.
“I welcome Geoffrey to the role of Chairman and wish him every success.”
Smith acknowledged the "significant contribution" of Goodman.
“I wish to personally acknowledge the leadership and vision of Tim Goodman, who has been an inspiring colleague and mentor for the past four years. I am delighted he will continue providing the company with advice and services as auctioneer in his new capacity as consultant.”
There will be no change to the operation of the company. Senior management remains steadfast in its pursuit of the company’s growth and market strategy.
"Sotheby’s Australia will pursue its goal of selling only the finest art, jewellery, and decorative arts. Recent sales figures vindicate the new strategy with significantly higher return on the fewer items sold, and records for prominent artists routinely broken," directors added.
The new ownership company has received support from Sotheby’s Asia.
"Sotheby's supports the new ownership team and looks forward to working with Geoffrey and his team going forward," said Mr Daryl Wickstrom, Deputy Chairman Sotheby's Asia.
Mr Smith said the new ownership represents a commitment to Australia’s art industry by a group of highly experienced and committed business people.
“A luxury brand in the classic sense, the company will continue to build relationships with collectors based on unparalleled advice and personalised service.”
For 16 years, Geoffrey Smith was curator of Australian Art at the National Gallery of Victoria. He left the gallery, however, with a hushed up settlement after a row with the board of the gallery that might have impacted on some vendors enthusiasm to consign to the company. But he brought with him many friendships and eminently satisfactory associations in the business.
The other investors are Malini Shanthikumar who was chief financial operator of the old grouping and with remain CFO.
Malini is a qualified accountant and a Fellow of the Institute of Chartered Accountants of Sri Lanka. She has diverse global experience in Sri Lanka, Zambia and New Zealand including Group Reporting Manager - Bank of New Zealand and Partner – Lawrie Muthu Krishna & Co. Malini has been CFO of Sotheby’s Australia for the past 10 years.
Finally John Mowbray who established Mowbray Mowbray Collectables Ltd, a New Zealand public company, in 1963 around his and Ronald Brierley's stamp interests, has 20 per cent.
As has consistently been stated since the original sale of the franchise the announcement added "Sotheby’s Australia is a trade mark used under licence from Sotheby's. Second East Auction Holdings Pty Ltd is independent of the Sotheby's Group. The Sotheby's Group is not responsible for the acts or omissions of Second East Auction Holdings Pty Ltd.
Goodman had acknowledged a couple of financial hiccups in his early years including the failure of an antiques centre into which several high profile society figures had invested funds.
The announcement referred solely to to Sotheby's Australia and there was no mention of the other auction house in the group, Leonard Joel.
Speculation persists that some deal is in the offing relating to Joel's for which Goodman retains directorial commitments as chairman of the holding company First East Auction Holdings Ltd.
This company is distinct from Second East Auction Holdings which owns the Sotheby's Australia licence.
