Adidas is the latest of Ye’s big-name partnerships to end its business relationship with the hip-hop star after he made repeated antisemitic comments and espoused disproven conspiracy theories last week. The company faced calls from all quarters yesterday to drop the former Kanye West from its list of partners.
Adidas issued a statement which read, in part, “end production of Yeezy branded products and stop all payments to Ye and his companies. adidas will stop the adidas Yeezy business with immediate effect.”
It indicated the cost of the move would be $246 million in 2022 alone.
The growing list of companies and projects which have separated from the controversial rapper now includes Adidas, Balenciaga, CAA and Gap, which Ye pulled away from himself last month. Further, MRC said Monday that it was not moving forward with its recently completed documentary about the musician. Endeavor CEO Ari Emanuel, Gersh’s Bob Gersh and UTA’s Jeremy Zimmer have all also spoken out to condemn him.
Here is the full statement:
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.
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. adidas will stop the adidas Yeezy business with immediate effect.
This is expected to have a short-term negative impact of up to €250 million on the company’s net income in 2022 given the high seasonality of the fourth quarter.
adidas is the sole owner of all design rights to existing products as well as previous and new colorways under the partnership. More information will be given as part of the company’s upcoming Q3 earnings announcement on November 9, 2022.
