Sotheby's head of Australian painting Geoff Cassidy said the controversy surrounding the painting helped its sale price, which was more than 30 times Ruddy's previous record of $9600.
CRAIG Ruddy installed himself as an artist capable of raising cash as well as controversy last night when his Archibald Prize-winning portrait of David Gulpilil sold for more than $300,000 in Sydney.
The charcoal portrait was the subject of a recent NSW Supreme Court case to determine whether it was a painting or a drawing, the court declining to make an artistic judgment but creating enough controversy to ensure a bigger sale price.
Sotheby's head of Australian painting Geoff Cassidy said the controversy surrounding the painting helped its sale price, which was more than 30 times Ruddy's previous record of $9600.
"That definitely was an element in raising the painting to iconic status," Mr Cassidy said.
"We've always believed it was an Australian masterpiece."
While the large, wiry picture of Gulpilil caused the biggest upset on price, reaching more than double Sotheby's high estimate of $150,000, the late Brett Whiteley's work continued to break records.
His large 4m-long 1988 still life Frangipani and Hummingbird fetched $2.04 million, a record for a Whiteley and the third-highest price for an Australian artist.
The painting was sold to a private collector from Melbourne after bidding started at $1.45million and lasted for three minutes.
The Whiteley and the Ruddy overshadowed a Sydney Nolan painting - one of his portraits of Ned Kelly - in the pre-auction publicity.
Although the Nolan painting of Australia's most famous criminal was considered by some to be the gem in the field it brought only $810,000, right in the middle of estimates. Sotheby's managing director Mark Fraser said it was a great day for art when a museum-class Nolan painting numbered only third at the sale on the focal point scale.
About 100 people crammed into Paddington Town Hall in Sydney's east for the sale, including Aussie Home Loans boss John Symond, who was a keen spectator and did not bid.
One couple who did bid was former federal Opposition leader and Boeing Australia boss Andrew Peacock and his wife Penne.
Late in the auction the pair picked up a Will Ashton painting for the comparative song of $12,000.
Overall, Sotheby's was pleased with the sale, which raised $7.7million including the 20 per cent buyers' premium, which was in the middle of the expected take from the sale.