Creative Financing Ideas: A Potential Sale of the Met Opera’s Chagalls

May 11, 2026

By Halle O’Hern

In January 2026, the Metropolitan Opera announced it may sell its two Marc Chagall murals, The Sources of Music and The Triumphs of Music.^[1] The paintings are located in the Grand Tier of the opera house facing the plaza.^[2] The giant thirty-six by thirty feet paintings were commissioned for the Metropolitan Opera upon its construction.^[3] The works have been features of the building since 1966. Sotheby’s recently valued the now iconic paintings at a total of $55 million.^[4] However, interestingly, the proposed sale entails that “the paintings would need to remain in place at the opera, and the owner would be recognized in a plaque.”^[5]

Credit: Enric Domas

Financial Struggles

At this time, the Metropolitan Opera is experiencing serious financial struggles. A multi-million dollar with the Saudi Arabian government, the Met was hoping to finalize, reportedly just fell through. The Met has an annual budget of $330 million and has already drawn $120 million from its endowment during these tough financial times.^[6] Weakening ticket revenues are the main source of the financial problems.^[7]

The Metropolitan Opera suggests selling the giant Chagall works, but retaining the art work in situ. While it is still unclear what the Metropolitan Opera’s next moves are regarding the Chagalls, the power and ability for owners to use their artworks to secure financial potential is clear.

A New York Times article shared a related incident of an institution attempting to use its art to secure funding. There was “a proposal by Lincoln Center in 1999 to sell a Jasper Johns painting, “Numbers, 1964,” which hangs in the lobby of the David H. Koch Theater (formerly the New York State Theater). Lincoln Center proposed the sale of the work, which attracted offers of more than $15 million, to raise money, until a public uproar forced it to back down.”^[8]

Chagalls as Collateral

This would not be the first time the Metropolitan Opera has utilized the Chagalls for financing. Back in 2009, the Metropolitan Opera also faced financial hardship. In response, the Met Opera put the Chagall murals up for collateral for an existing loan as well as asking for a pay cut among its singers.^[9] This previous loan was from JPMorgan Chase.^[10]

In addition to the JPMorgan loan, it appears from regulatory filings that the Metropolitan Opera has pledged the works as collateral to Bank of America and, more recently, Citibank.^[11] The latest loan was made in 2021 during the pandemic.^[12] Filings also indicate that the Metropolitan Opera has made use of pledging its two Aristide Maillol sculptures as well.^[13]

The Metropolitan Opera’s current proposal for the sale of the Chagalls would entail a shared ownership arrangement, paralleling other deals made by other institutions.^[14] This proposal also highlights the large realm of possibilities of ways to use one’s art collection to gain financing.

About Art-Backed Loans Generally

Like the need for finances for the Metropolitan Opera, there are many foreseeable reasons why someone would want to use their art to secure financing. One method, like the 2009 loan, is through art-backed loans.

Art-backed loans provide collectors a method through which to use their artworks in order to gain valuable liquidity. Interestingly, in 2023, Bank of America stated that “there had been a steady growth of 10% a year in art-backed loans over the past decade or so.”^[15]

A “‘true’ art backed loan is made with recourse only to the work or works of art pledged as collateral.”^[16] An art-backed loan “is a secured transaction, which means that a lender will need to “perfect” its lien on the collateral.”^[17] This is done by filing a UCC-1.^[18]

The world of art lending has also grown, with increasing amounts of players who specialize in these types of transactions. For example, specific institutions include Sotheby’s Financial Services, Bank of America, Athena Art Finance, and Borro.”^[19]

Uniform Commercial Code

It is thought that art lending is much larger in the United States because of the Uniform Commercial Code (UCC).^[20] The Uniform Commercial Code (UCC) is a unique feature in the United States. It is a model set of laws governing certain commercial transactions.^[21]

In the case of art loans, the UCC-1 document provides a “‘financing statement’ filed to provide notice that a creditor has a security interest in a debtor’s personal property. It is not an agreement. It is a notice that one person claims an interest in someone else’s property, usually as collateral for a debt.”^[22] This recorded lien against the assets can give reassurance to a lender.”^[23]

However, while there are benefits to notice provided by the UCC-1, certain collectors may not want the publicity. The UCC-1 is a “a public record that lists the name of the debtor and may list the specific art that is subject to the lender’s lien. This record is obtainable by anyone- in fact, in some states it can be obtained online at the secretary of state’s office for free.”^[24] For a private-minded collector, this may be a serious drawback though.

Privacy drawbacks aside, the UCC-1 filing establishes that a lender’s “priority claim should the borrower default or the artwork be subject to competing liens.”^[25] This legal feature is a major contributing reason as to why art lending is so popular in the United States, protecting lenders and providing legal stability.

Returning to the Current Chagall Proposal

Art backed financing is a complex and interesting topic. In comparison to an art backed loan transactions, the current proposed transaction of the Metropolitan Opera is the sale of the two giant murals, but with the requirement that the works stay in place. This kind of transaction would undoubtedly implicate charitable, non-profit, and tax implications.

In a Kiplinger article, Thomas Ruggie made astute observations about potential charitable implications for a buyer of works like these.^[26] Ruggie also made clear that any buyer should consult with professionals.

Ruggie suggested that, “In part because of the leave-in-place stipulation, he suspects that a potential Chagall buyer would be someone whose interest first and foremost is philanthropy.”^[27] One idea was that “a person could buy the works, hold them for a year, and then donate them back to the Met, which is a nonprofit. They could be purchased through a foundation or donor-advised fund, and you could, for tax planning purposes, purchase parts of it in different years.”^[28]

Another idea that Ruggie proposed for tax deductions was through leasing.^[29] After being purchased, the artworks could then be leased back to the Metropolitan Opera. In connection with all these possibilities, Ruggie made clear that “a buyer should consult with a financial adviser and tax professional to help assess what’s doable.”^[30]

Conclusion

The Metropolitan Opera as well as the Chagall murals alike are important cultural landmarks to New York City and the world. Earlier in 2026, the Met Opera announced “it would lay off workers, cut the salaries of its top-paid executives and postpone a new production from its coming season.”^[31] There is also a deal with Saudi Arabia that may help provide financing, involving the Met to stage performances in Saudi Arabia at the new Royal Diriyah Opera House in Riyadh.^[32]

General Manager Peter Gelb said, “We are being as entrepreneurial as possible.What is clear is that we have to come up with new business models. It’s true for all performing institutions, but the costs are so great for running an institution like the Met, that it is necessary to find new ways to fund it.”^[33] This potential sale of the Chagalls shows how strong leadership and creative ideas are and will be necessary for cultural institutions to survive in increasingly tough financial climates.

About the Author:

Halle O’Hern (Brooklyn Law JD Candidate, Class of 2027) served as a legal intern with the Center for Art Law, Spring 2026.

Select References

1. Katie White, Decoding the Visual Poetry of the Met Opera’s Beloved Chagall Murals, artnet (Jan. 23, 2026), available at https://news.artnet.com/art-world/metropolian-opera-chagall-murals-explained-2739770. ↑
2. Katie White, Decoding the Visual Poetry of the Met Opera’s Beloved Chagall Murals, artnet (Jan. 23, 2026), available at https://news.artnet.com/art-world/metropolian-opera-chagall-murals-explained-2739770. ↑
3. News Desk, Cash-Strapped Metropolitan Opera Might Sell Iconic Chagall Works, ARTFORUM (Jan. 22, 2026), available at https://www.artforum.com/news/metropolitan-opera-considers-selling-iconic-chagall-works-1234742374/. ↑
4. Katie White, Decoding the Visual Poetry of the Met Opera’s Beloved Chagall Murals, artnet (Jan. 23, 2026), available at https://news.artnet.com/art-world/metropolian-opera-chagall-murals-explained-2739770. ↑
5. Katie White, Decoding the Visual Poetry of the Met Opera’s Beloved Chagall Murals, artnet (Jan. 23, 2026), available at https://news.artnet.com/art-world/metropolian-opera-chagall-murals-explained-2739770. ↑
6. News Desk, Cash-Strapped Metropolitan Opera Might Sell Iconic Chagall Works, ARTFORUM (Jan. 22, 2026), available at https://www.artforum.com/news/metropolitan-opera-considers-selling-iconic-chagall-works-1234742374/. ↑
7. Graham Bowley and Julia Jacobs, The Met Opera’s Desperate Hunt for Money, New York Times (Mar. 8, 2026), available at https://www.nytimes.com/2026/03/08/arts/met-opera-peter-gelb-finances.html. ↑
8. Daniel J. Wakin, The Met Offers Chagalls as Collateral, New York Times (Mar. 3, 2009), available at https://www.nytimes.com/2009/03/04/arts/music/04oper.html. ↑
9. Daniel J. Wakin, The Met Offers Chagalls as Collateral, New York Times (Mar. 3, 2009), available at https://www.nytimes.com/2009/03/04/arts/music/04oper.html. ↑
10. Daniel J. Wakin, The Met Offers Chagalls as Collateral, New York Times (Mar. 3, 2009), available at https://www.nytimes.com/2009/03/04/arts/music/04oper.html. ↑
11. Katya Kazakina, How the Met Opera Turned Beloved Murals Into Financial Tools, artnet (Jan. 30, 2026), available at https://news.artnet.com/market/met-opera-murals-financial-tools-2740082. ↑
12. Katya Kazakina, How the Met Opera Turned Beloved Murals Into Financial Tools, artnet (Jan. 30, 2026), available at https://news.artnet.com/market/met-opera-murals-financial-tools-2740082. ↑
13. Katya Kazakina, How the Met Opera Turned Beloved Murals Into Financial Tools, artnet (Jan. 30, 2026), available at https://news.artnet.com/market/met-opera-murals-financial-tools-2740082. ↑
14. Katya Kazakina, How the Met Opera Turned Beloved Murals Into Financial Tools, artnet (Jan. 30, 2026), available at https://news.artnet.com/market/met-opera-murals-financial-tools-2740082. ↑
15. Till Vere-Hodge and Katalin Andreides, Exhibit 1. Navigating a Sea of Instability, The Art Basel and UBS Global Art Market Report (2024), available at https://theartmarket.artbasel.com/download/The-Art-Basel-and-UBS-Art-Market-Report-2024.pdf. ↑
16. Tarter Krinsky & Drogin LLP, Investing in Art Backed Loans: Five Considerations, Tarter Krinsky & Drogin LLP (Nov. 13, 2019), available at https://www.tarterkrinsky.com/insights/investing-in-art-backed-loans-five-considerations. ↑
17. Michael W. Kaufman, From Collection to Collateral: What Families Should Know About Art Financing, Day Pitney LLP (Feb. 12, 2026), available at https://www.daypitney.com/from-collection-to-collateral-what-families-should-know-about-art-financing#:~:text=An%20art%20loan%20is%20a,and%20tax%20advisors%20particularly%20important. ↑
18. Michael W. Kaufman, From Collection to Collateral: What Families Should Know About Art Financing, Day Pitney LLP (Feb. 12, 2026), available at https://www.daypitney.com/from-collection-to-collateral-what-families-should-know-about-art-financing#:~:text=An%20art%20loan%20is%20a,and%20tax%20advisors%20particularly%20important. ↑
19. Violet Scharf, Art as Collateral: The Legal Landscape of Art-Backed Lending, Sheppard (Jul. 29, 2025), available at https://www.jdsupra.com/legalnews/art-as-collateral-the-legal-landscape-3684244/. ↑
20. Georgina Adam, The rise of art-backed loans is spectacular—here’s how they work, The Art Newspaper (Mar. 8, 2023), available at https://www.theartnewspaper.com/2023/03/08/art-loans-spike-as-specialist-lenders-multiply. ↑
21. Uniform Law Commission, Uniform Commercial Code, Uniform Law Commission, available at https://www.uniformlaws.org/acts/ucc. ↑
22. Department of State, UCC Frequently Asked Questions, New York State, available at https://dos.ny.gov/ucc-frequently-asked-questions. ↑
23. Georgina Adam, The rise of art-backed loans is spectacular—here’s how they work, The Art Newspaper (Mar. 8, 2023), available at https://www.theartnewspaper.com/2023/03/08/art-loans-spike-as-specialist-lenders-multiply. ↑
24. Michael W. Kaufman, From Collection to Collateral: What Families Should Know About Art Financing, Day Pitney LLP (Feb. 12, 2026), available at https://www.daypitney.com/from-collection-to-collateral-what-families-should-know-about-art-financing#:~:text=An%20art%20loan%20is%20a,and%20tax%20advisors%20particularly%20important. ↑
25. Violet Scharf, Art as Collateral: The Legal Landscape of Art-Backed Lending, Sheppard (Jul. 29, 2025), available at https://www.jdsupra.com/legalnews/art-as-collateral-the-legal-landscape-3684244/. ↑
26. Alexandra Svokos, The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?, Kiplinger (Jan. 28, 2026), available at https://www.kiplinger.com/personal-finance/leisure/the-met-opera-may-sell-iconic-paintings-is-it-a-good-investment#:~:text=In%20part%20because%20of%20the,the%20lease%20an%20annual%20donation. ↑
27. Alexandra Svokos, The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?, Kiplinger (Jan. 28, 2026), available at https://www.kiplinger.com/personal-finance/leisure/the-met-opera-may-sell-iconic-paintings-is-it-a-good-investment#:~:text=In%20part%20because%20of%20the,the%20lease%20an%20annual%20donation. ↑
28. Alexandra Svokos, The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?, Kiplinger (Jan. 28, 2026), available at https://www.kiplinger.com/personal-finance/leisure/the-met-opera-may-sell-iconic-paintings-is-it-a-good-investment#:~:text=In%20part%20because%20of%20the,the%20lease%20an%20annual%20donation. ↑
29. Alexandra Svokos, The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?, Kiplinger (Jan. 28, 2026), available at https://www.kiplinger.com/personal-finance/leisure/the-met-opera-may-sell-iconic-paintings-is-it-a-good-investment#:~:text=In%20part%20because%20of%20the,the%20lease%20an%20annual%20donation. ↑
30. Alexandra Svokos, The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?, Kiplinger (Jan. 28, 2026), available at https://www.kiplinger.com/personal-finance/leisure/the-met-opera-may-sell-iconic-paintings-is-it-a-good-investment#:~:text=In%20part%20because%20of%20the,the%20lease%20an%20annual%20donation. ↑
31. Adam Nagourney, Despite Drastic Financial Steps, Met Opera Turns to Layoffs and Cuts, New York Times (Jan. 20, 2026), available at https://www.nytimes.com/2026/01/20/arts/music/met-opera-budget-cuts.html. ↑
32. Javier C. Hernández, The Met Opera Turns to Saudi Arabia to Help Solve Its Financial Woes, New York Times (Sep. 3, 2025), available at https://www.nytimes.com/2025/09/03/arts/music/met-opera-saudi-arabia-finances.html. ↑
33. Adam Nagourney, Despite Drastic Financial Steps, Met Opera Turns to Layoffs and Cuts, New York Times (Jan. 20, 2026), available at https://www.nytimes.com/2026/01/20/arts/music/met-opera-budget-cuts.html. ↑