What Happened to the Kanye West Adidas Deal?
Recently, Something went wrong concerning Kanye West Yeezy and Adidas business collaboration. You might be asking what really happened to this deal.
What Happened to the Kanye West Adidas Deal?
The Adidas company ended its partnership with rapper and fashion designer Ye on Tuesday, October 25th, 2022 after he made a series of antisemitic remarks, knocking him off Forbes’ list of the world’s billionaires.
This month, Adidas reviewed the collaboration, which has resulted in several hot-selling Yeezy-branded sneakers.
Adidas does not tolerate antisemitism or any other form of hate speech,” the German conglomerate stated on Tuesday.
Ye’s recent comments and actions were unacceptable, hateful, and dangerous, and they violated the company’s values of diversity and inclusion, mutual respect, and fairness, the statement said.
According to Forbes magazine, the end of the deal reduced Kanye’s net worth to $400 million. The magazine valued at $1.5 billion his stake in the Adidas partnership.
According to Forbes, the rest of Ye’s fortune is made up of real estate, cash, his music catalog, and a 5% stake in ex-wife Kim Kardashian’s shapewear company, Skims.
Representatives for Ye, formerly Kanye West, did not respond immediately to a request for comment.
Ending the partnership and production of Yeezy branded products, as well as ceasing all payments to Ye and his companies, will have a short-term negative impact on net income this year of up to 250 million euros ($248.90 million), according to Adidas.
Furthermore, In recent months, Ye has courted controversy by publicly terminating major corporate alliances and venting on social media against other celebrities.
Also, His Twitter and Instagram accounts were blocked, and the social media platforms removed some of his anti-Semitic online posts.
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Earlier this year, in now-deleted Instagram posts, the multiple Grammy award-winning artist accused Adidas and U.S. apparel retailer Gap Inc.
Gap was accused of failing to build contractually promised permanent stores for his Yeezy fashion line.
He also claimed that Adidas stole his designs for its own products.
Gap, which ended its partnership with Ye in September, announced on Tuesday that it was taking immediate steps to remove Yeezy Gap products from its stores and had shut down YeezyGap.com.
Any form of antisemitism, racism, or hatred is inexcusable and will not be tolerated in accordance with our values,” Gap said in a statement. According to media reports, European fashion house Balenciaga has also severed ties with Ye.
The Ye saga emphasizes the importance of thoroughly vetting celebrities. Also, avoiding those who are overly controversial or unstable said Neil Saunders, managing director of GlobalData.
Adidas recruited Ye from rival Nike Inc in 2013 and announced a new long-term partnership in 2016. The company described it as the most significant partnership created between a non-athlete and a sports brand.
Also, The collaboration aided the German brand in closing the gap with Nike in the US market.
According to Telsey Advisory Group, Yeezy sneakers, cost between $200 and $700. This generates approximately $1.47 billion in annual sales for Adidas, accounting for slightly more than 7% of total revenue.
