Adidas Terminates Partnership With Kanye West at a Cost of $246 Million

Adidas Terminates Partnership With Kanye West at a Cost of $246 Million

Sports brand Adidas has terminated its partnership with Kanye West over his antisemitic comments in a move it estimates will impact its bottom line by up to €250 million ($246 million) this year alone, the company said Tuesday.

Adidas said in a statement that company “does not allow antisemitism and any other form of hate speech,” referring to West by his stage name “Ye.” Ye has recently made remarks and taken acts that are undesirable, dangerous, and against the company’s principles of inclusiveness, respect, and fairness.

West and the sports company first joined forces for a fashion collaboration — known as Adidas Yeezy — seven years ago.

Adidas announced that it has decided to cease the collaboration, stop making Yeezy-branded products, and stop making payments to his firms after conducting a “thorough evaluation.” The announcement read, “Adidas will cease the Adidas Yeezy business with immediate effect.”

The brand predicted that ending the Yeezy collaboration will have a negative impact on Adidas’s net income in 2022 of €250 million due to the “strong seasonality of the fourth quarter,” which includes Black Friday and Christmas. However, the firm stated that it expects the decline to be temporary.

A caution to West’s camp should the rapper try to replicate the designs with a different manufacturer was undoubtedly included in Adidas’ statement that it is the “sole owner of all design rights” under the collaboration.

The action comes after recent attacks by West on the Jewish community. He announced on social media earlier this month that he intended to go “death con 3 on Jewish people,” among other things. Then he made an appearance on “Drink Champs” on Revolt TV and launched into an antisemitic rant.

Following West’s remarks, a white nationalist organization in Los Angeles put up a sign that said, “Kanye is right about the Jews,” above the 405 freeway.

West has lost CAA as a client as a result of his repeated antisemitic comments, and a finished documentary about the rapper from MRC has been shelved.