Ye and adidas Reach Apparent Agreement to Sell $500 Million of Yeezy Stock
This news was first published on March 23, 2022.
Update February 27, 2023: A gargantuan rumour has circled the internet over the weekend alleging that adidas have signed a new agreement with Ye. This new partnership will be in place to sell the remaining $500 Million worth of Yeezy stock. Once all the unsold product is gone, it seems the partnership will again be terminated. The Kanye and adidas camps are yet to officially confirm the rumour but stay locked to SF to keep updated.
Update February 10, 2023: adidas are yet to find their financial footing following the end of their Yeezy partnership. They’ve just detailed their current status across a number of areas, sharing they are still in the process of reviewing future options for the utilisation of Yeezy inventory, which has had a ‘significant adverse impact’ due to the unsold stock. If they continue to hold, it’s expected that revenues will be lowered by approximately €1.2 billion ($1.29 billion), and operating profits would take a €500 million ($537 million) hit this year. adidas also expects a one-off cost of up to €200 million in 2023, allocated towards a strategic company review.
adidas CEO Bjørn Gulden has stated, ‘The numbers speak for themselves. We are currently not performing the way we should. 2023 will be a year of transition to set the base to again be a growing and profitable company.’
Update February 2, 2023: Following last year’s announcement that Kanye West and adidas will part ways, the Yeezy Supply website has officially gone offline.
Today, adidas released a statement announcing the end of the brand’s YEEZY, collaboration with Kanye West.
The statement outlines that the brand felt Kanye has violated adidas’ values of ‘diversity and inclusion, mutual respect and fairness.’ adidas also specified that the brand maintains ownership of YEEZY designs, ‘adidas is the sole owner of all design rights to existing products as well as previous and new colorways under the partnership.’
Over the last several weeks, West’s media tirade has made headlines because of anti-semitic remarks and spreading misinformation about the murder of George Floyd. West used platforms like those of mainstream media figure Piers Morgan, as well as the hip-hop podcast, Drink Champs, to make the dangerous remarks throughout the last few weeks.
While on Drink Champs, West claimed, ‘I can say anti-Semitic things, and adidas can’t drop me.’
This resulted in public outcry, asking for adidas to cancel its relationship with West, including a specific petition on Change.org that received over 169,000 signatures at the time of writing this article. In the days following West’s remarks, publishers like Vogue distanced from West, while his creative agency and lawyer announced they were dropping him as a client.
While this is only the latest development in an ongoing situation between Kanye West, adidas, and GAP, you can check out our comprehensive report here.
Read adidas’ statement in full below.
‘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.’
