Why Did It Take Adidas Over 2 Weeks to Cut Ties With Kanye West?
Kanye West has made headlines in the fall of 2022 for offensive statements and actions such as wearing “White Lives Matter” T-shirt at his Yeezy fashion show or making multiple antisemitic comments, some of which were violent. It resulted in some of the companies Ye has partnered with over the years terminating their business relationships with the Grammy-winning rapper, including German athletic apparel brand Adidas. But unlike other companies, Adidas’ eventual dropping of West came after weeks of public outcry and demanding of a response from the clothing giant.
Kanye West has been called out for antisemitic comments
After his “White Lives Matter” T-shirt stunt, many wondered what Kanye West would do next that would offend people. He first took to Twitter and directed his anger at Jewish people. “I’m a bit sleepy tonight but when I wake up I’m going [DEFCON] 3 on Jewish people,” he said in the since-deleted tweet. “The funny thing is I actually can’t be anti-Semitic because black people are actually Jews also.”
“You guys have toyed with me and tried to blackball anyone whoever opposes your agenda,” the rapper added.
Over the next several weeks, Ye continued to double down on his comments and continue spewing antisemitic comments and conspiracy theories. He was given a platform to do so on shows like Drink Champs (the episode of which has since been removed from YouTube) and Piers Morgan Uncensored.
Adidas dropped him after a ‘thorough review’
In his since-deleted Drink Champs interview, Kanye believed he was invincible when it came to his business relationships as they pertain to the comments he was being criticized for. “The thing about it being Adidas is, like, I can literally say antisemitic s*** and they can’t drop me,” he said. “I can antisemitic things and Adidas can’t drop me. Now what? Now what?”
Finally, on Oct. 25, Adidas announced that it was severing its fraught business relationship with Kanye and dissolving the Adidas Yeezy brand, which has released several different models of shoes, as well as shirts, jackets, track pants, socks, slides, and even lingerie since launching in 2015.
“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a statement. “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.”
“After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies,” the statement added. “Adidas will stop the Adidas Yeezy business with immediate effect.”
In addition to Adidas, other fashion brands that Yeezy has partnered with over the years like Balenciaga and Gap have terminated their relationships with the “Stronger” rapper.
Adidas owns Ye’s designs
Adidas claimed that it would result in a loss of about €250 million for its 2022 net income, and the overall deal was reported to be worth $1.5 billion. The German apparel giant, which itself has ties to Hitler’s Nazi Germany, also declared that they own all of Ye’s current designs for Adidas Yeezy products as well as newer ideas that were in the pipeline.
“Adidas is the sole owner of all design rights to existing products as well as previous and new colorways under the partnership,” the statement read. “More information will be given as part of the company’s upcoming Q3 earnings announcement on November 9, 2022.”
He lost his billionaire status as a result of the deal ending
Perhaps his most lucrative business relationship to date, Ye’s $1.5 billion deal with Adidas was the cornerstone of his billionaire status, which he achieved just a few years ago. According to Forbes, however, the termination of the Adidas partnership has decimated his net worth, and as a result, he’s no longer a billionaire.
Without the Adidas partnership, Ye’s reported net worth sits at approximately $400 million. Forbes estimates that what remains of his fortune comes from real estate, cash, his music catalog, and a 5% stake in ex-wife Kim Kardashian’s shapewear brand, Skims.
