Only Watch is one of the world’s most prestigious watch auctions, taking place every two years under the patronage of Prince Albert of Monaco. Shortly before the charity event was due to take place for the tenth time, demands for more transparency on social media set developments in motion that ultimately led to the auction being postponed until next year. The allegations centred on inconsistencies, such as 55 million euros’ worth of profits not being distributed, alongside questionable corporate structures that have distorted the image of the high-profile auction. Recent events have revealed just how much the transparency of auction structures have fallen by the wayside – something that is now being insisted upon. In this article, I will take a closer look at what Only Watch is accused of and how little it took to cause the organisation to collapse.
Why is transparency so crucial?
Only Watch plays a paramount role in the world of luxury watch auctions and charity organisations. Since 2005, no less than 126 watch brands have participated in Only Watch, all of which have designed, produced, and marketed a unique timepiece at their own expense. Some of these watches achieve unprecedented prices, such as the Patek Philippe Grandmaster Chime auctioned in 2019, which went under the hammer for 31 million Swiss francs, making it the most expensive watch to ever be sold at an auction. This gives rise to a special ethical and moral responsibility to ensure that the funds raised are used effectively and responsibly. Transparency allows the organisation to be held accountable for its actions and to ensure that funds are used properly and not wasted.
Luc Pettavino presents himself to the world as a discreet Monégasque and founder of Only Watch, and was, for a long time, the director of the annual Monaco Yacht Show, which takes place in the Principality of Monaco. His commitment to the fight against Duchenne muscular dystrophy goes way back to a time when tragedy struck his family, leading Pettavino to lose his son, who was affected by the muscle disease, tragically dying from it in 2016 at the age of 21. Pettavino asked himself what he could do to make a contribution and, with the help of other parents of children affected by the disease, founded the Association Monégasque contre les Myopathies (AMM) in 2001. To raise funds, the AMM launched the Only Watch auction and then decided to create a funding stream for researchers investigating therapeutic options, most of which were aimed at combating Duchenne myopathy or related diseases.
Journalist Grégory Pons and his website Business Montres were the first to make the accusations, claiming that the Association Monégasque contre les Myopathies (AMM) and Only Watch were violating the principles of good governance. He was then joined by Instagram accounts focused on the watch sector to draw attention to the lack of transparency and to call for transparency. This triggered a domino effect that began with Audemars Piguet withdrawing its Royal Oak Flying Tourbillon Openworked Only Watch Edition from the auction with an estimated value ranging between CHF 300,000 and CHF 500,000. Meanwhile, Richard Mille and Patek Philippe had not even officially presented their timepieces.
At the same time, F.P. Journe took a stand and reaffirmed its support for Only Watch by describing Luc Pattevino as a ‘remarkable man’. Nevertheless, this pressure, now coming from both customers and the brand, ultimately led to the auction being postponed until further notice (an exact date is not known). The AMM did try to answer the questions but realised that they did not have enough time to clear all doubts before the auction. After all, there is no point in organising a charity auction if it is unclear where the money will ultimately go. The latest events surrounding Only Watch show us that social media is a powerful tool for drawing attention to mismanagement, even in the long-established and often private watchmaking sector. And in the case of Only Watch, it seemed to take very little to reveal just how porous their internal structures really are.
Where are the 100 million euros?
One question seemed to be of particular concern to the public: what happened to the 100 million euros raised since 2005? Under pressure from the watch brands, Luc Pettavino announced in a letter to his community on 8 October that a large part of the money – more than 55 million euros – is being kept in various Société Générale accounts. At an earlier stage, Only Watch had already communicated that this reserve was necessary because the final clinical phase before the launch of a drug is very costly, and they did not want to risk running out of money in the final stage. But what happened to the rest of the money that was raised? The majority went to two biotech start-ups founded by the AMM with the aim of finding a treatment for Duchenne myopathy. The first start-up, Synthena AG, was founded in Bern in 2012 and received just over 14 million euros from the AMM between 2013 and 2019. The second start-up, SQY Therapeutics, was founded in France in 2014 and has received a little more than 27 million euros in AMM funding to date.
The accusation of a lack of transparency is justified by the fact that the Pettavino family are shareholders in SQY Therapeutics. As Off Investigation found out, Luc Pettavino and his daughter Tess each own 4,000 shares in the company. But there is more to it than that: AMM, where father and daughter Pettavino hold the roles of chairman and CEO respectively, also has a 49% stake. The rest of the shareholders are made up of four other parents of affected children (4,000 shares each). In January 2023, the shareholders of SQY Therapeutics made another change that raises questions. The company was converted from a private limited company into an SAS (Société par actions simplifiée).
The main advantage of the SAS compared to an ordinary public limited company is that the company is not subject to strict notification and transparency obligations. In comparison to a regular public limited company, only two shareholders are required for an SAS instead of seven. And although the shares may not be listed on the stock exchange, this business type is considered more credible for investors and makes it easier for them to enter and leave the company. In other words, structures have been created here that would represent significant value for shareholders if a cure is found. This, in turn, leads to a contradiction, as the same people who decide on the distribution of the funds collected would simultaneously have a stake in the companies receiving the funds. Luc Pettavino stated in a letter to his community on 8 October that no dividend has ever been paid and that no payments will be made in the future. Pettavino continues, ‘Once certain stages of development are reached, and should the biotech one day become profitable, its form will change to protect its non-profit orientation’.
What role does Luis Garcia play?
Dr Luis Garcia is a molecular biology researcher, director of the U1179 Inserm-UVSQ research unit, and scientific advisor to SQY Therapeutics. Off Investigation uncovered that he is also a minority shareholder with a 5% stake in Synthena AG, the first start-up financed by AMM, which holds 95% of the shares. The issue: according to a document shared by Luc Pettavino, which lists the funds distributed over the last ten years, he also received 130,116 euros for various scientific consultancies between 2013 and 2018. These consultations are said to have been for both SQY Therapeutics and Synthena. This fact inevitably leads to the question of whether he may also benefit directly or indirectly from the money paid and his position at the company.
What happens next in the Only Watch project?
Now, all eyes are on Only Watch, and it is up to them to do everything they can to show that the funds have been properly utilised. It is important to note that SQY Therapeutics has already started a human clinical trial. On 14 June 2023, the first of 12 boys with Duchenne muscular dystrophy received his first dose of the SQY51 compound at the Raymond Poincaré Hospital in Garches. The other eleven participants followed one after the other at intervals of at least one week. It is thus indisputably proven that funds were used to finance extensive research and development work. However, to dispel any doubts, Only Watch will need to return with leadership that can ensure the transparent continuation of the auction. To regain credibility, it will also be necessary for the Pettavinos to no longer be shareholders in SQY Therapeutics and for their shares to be sold to the parents’ associations (who initiated the foundation of the company).
It is also unclear what will happen to the watches that watchmakers and brands have contributed to Only Watch. It remains to be seen whether the individual pieces will be sold privately, retained, or even sold at a new auction.
It is a touching tribute to his father: as Philippe Stern turns 85 on 10 November, his son, Thierry Stern, will introduce the world to the Reference 1938P-001, limited to a mere 30 pieces. Thus, the current President will pay homage to the Honorary President of the manufacture, while its employees likewise honour the man who…
Swisswatches recently had the honour of meeting once again with the CEO of Breitling, Georges Kern, following the launch of the brand’s first own boutique located in Munich, Germany. Spanning over 220 square metres and two floors, the boutique in many ways embodies Breitling’s plans for the future – as Kern explains to our very…
The German manufacture has unveiled a new version of its 1815 Tourbillon, housed in a platinum case and featuring a black grand feu enamel dial. Limited to just 50 pieces, this edition joins the two existing models, which are both characterised by lighter dials: one in platinum with a white dial, and one in red…
The modern-day Breitling chronograph dates back to 1983, when it was first conceived for the aerobatic squadron of the Italian Air Force, "Frecce Tricolori". One year later, upon the 100 year anniversary of Breitling, the Chronomat was produced as a series for the first time, in the form of the Ref. 81950. It was distinguished…
As was the case last year, the 2020 CODE 11.59 by Audemars Piguet line breaks numerous boundaries, but everyone knows that when it comes to Audemars Piguet, the line still isn't the star of the show. But does that mean it can't become an iconic part of the watchmaker's portfolio in the future? Audemars Piguet…
It is a highly competitive model series for a particularly fiercely contested genre. After all, steel diver's watches have been extremely popular for decades, and the range of different brands is almost unmanageable. TAG Heuer has been a player in this segment since the late 1970s. Its Aquaracer collection is now a key component of…
Entering a competitive industry is never easy, but sometimes it's a vital step for growth. Renowned watchmaker Raymond Weil embraced this challenge with the launch of its all-new millesime (French for 'vintage') collection in 2023. Since then, the collection has resonated with a new generation of watch enthusiasts, gaining significant traction. Now, Raymond Weil is…
The Bauhaus movement celebrates its 100thanniversary this year and still today stands for functionality and aesthetics. Due to the industrialization, Bauhaus manifested a basic philosophy to preserve the artistic work and bring it in line with the raising engineering sciences. The aim was to grant a broad audience access to quality products. Typical design elements…
As an author who has spent over twenty years writing about mechanical wristwatches, being tucked away for two hours in a shadowy wine cellar in Cologne’s old town with thirty potential watch clients is truly exciting. It’s not just the rare wines they savoured together – including a Bordeaux from 1988 – but the open…
If you happen to have spent even the smallest amount of time interested in watches, you have probably already come across the term ‘chronometer’, and perhaps even confused it with chronograph. If like me however, you spend far too long researching watches, then you no doubt have glazed over it more times than you could…
Following the launch of the AVI Ref. 765 1953 Re-Edition in 2020, Breitling is now introducing the new Super AVI watch line, a larger version with a case diameter of 46 mm. The five new models pay homage to the most important fighter planes of the 1940s, as well as to the original references from…
When it comes to expanding Parmigiani Fleurier's clientele, it seems it's not all about fast and furious growth. Recently installed CEO Guido Terreni, leading the manufacture since the start of 2021, evidently prides himself upon creating a customer base that is not necessarily far-reaching, but rather fits with the company's values. "We are choosing an…
Cartier has introduced two new iterations of the Tank Louis Cartier, thus expanding one of its most emblematic watch designs. As a successor to the original Tank Normale, first conceived in 1917, the Tank Louis Cartier has been an enduring symbol of elegance and refinement since its creation in 1922, making it an ever-popular centenarian.…