Adidas Terminates Partnership With Kanye West, Estimates an Impact of $246 Million This Year
Following public outcry, Adidas has terminated its partnership with Kanye West. And the company anticipates a sales impact of $246 million this year.
After the “All Day” rapper set sights on Jewish people in various rants, the apparel giant decided to part ways. Notably, West was their “most important partner,” the Adidas CEO once said. And the company announced they anticipate a temporary impact on their bottom line in this year’s fourth quarter.
However, their statement made clear the decision was unavoidable by declaring “they will not tolerate antisemitism and any other sort of hate speech.”
The Anti-Defamation League urged Adidas to sever ties with Kanye West over ‘increasingly strident antisemitic remarks’
The Anti-Defamation League (ADL) was among individuals and organizations calling on Adidas to cut ties with West. This followed what they called “increasingly strident antisemitic remarks,” including a threat to go “death con 3 on Jewish people.”
“As I’m sure you are aware, Ye, formerly known as Kanye West, has recently used his media presence and social influence to espouse antisemitic tropes about Jewish intimidation, power and control,” the ADL noted in a letter to the apparel giant about the “Gold Digger” rapper.
The ADL concluded their letter, “In light of all of this, we urge Adidas to reconsider supporting the Ye product line …”
Adidas terminated partnership with Kanye West following a company review
Adidas previously announced that its partnership with West was under review, and they followed up by declaring the relationship would be terminated.
“After repeated efforts to privately resolve the situation, we have taken the decision to place the partnership under review. We will continue to co-manage the current product during this period,” the company said in a statement (per CNBC).
“Adidas does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
The statement added that the company is the “sole owner of all design rights,” seemingly as a warning to the rapper about trying to reproduce the designs.
Months before their split, CEO Kasper Rorsted told CNBC, “Kanye is our most important partner worldwide. We have a very, very good relationship with him. We communicate with him on a very ongoing basis. And we’re very proud of that relationship.”
Adidas expects an impact of about $246 million on this year’s bottom line after cutting ties with Kanye West
As reported by Variety, Adidas anticipates its bottom line to be impacted by approximately $246 billion this year following the choice to cut ties with West.
Looking at the fourth quarter, which includes Black Friday and Christmas sales, they expect a temporary but impactful dip in sales.
Furthermore, CAA talent agency dropped West as a client, Balenciaga parted ways with him as a partner, his completed documentary was shelved, and his ex-wife Kim Kardashian released a statement denouncing hate speech. His behavior has also been called out by many others, including his longtime producer.
