Losing Adidas would deprive Ye of a key source of income
The creators of the popular Yeezy sneakers are finally ready to part ways.
Bloombergwho reports the move a few hours before the official announcement, said that adidas could continue to produce the models because it believes to hold the intellectual property rights thereon, citing anonymous sources. But according to the company’s statementthis “will be stop the adidas Yeezy Company with immediate effect.”
The Ye-Adidas split up
In 2016, when the deal was first announced, Adidas called it “the most significant partnership ever created between a sports brand and a non-athlete.” In 2018, when Ye called slavery a “choice”, Adidas continued to work with him despite pressure to cut ties.
So what has changed now?
In recent months, the relationship between the two has got more and more tense. You have left after Adidas for allegedly stealing his designs and going back on promises such as opening branded stores. (He also made similar charges against Gap, which cut ties last month.) In September, West claimed Adidas tried to buy him out for 1 billion dollars. Separately there was uncomfortable pictures of Ye forcing Adidas executives to watch porn at a business meeting.
The breaking point appears to come after Ye made controversial anti-Semitic statements in recent weeks, including wanting to leave”death against 3about the Jewish people. Not only do the comments have it banned from Instagram and Twitterseveral partner companies have decided to sever ties with Ye.
Especially since the chorus asking Adidas to do the same is growing with many, including Karen Bass, LA mayoral candidate and Friends celebrity David Schwimmer, putting pressure on the brand. Adidas’ commercial marketing director, Sarah Camhi, also called on her employer to take a stand and condemn Ye’s anti-Semitic remarks: “To say nothing is to say everything,” she wrote in a Public publication on LinkedIn.
What you say
“The thing with me and Adidas is that I can literally say anti-Semitic bullshit and they can’t let go of me. I can say anti-Semitic things and Adidas can’t let me go. Now what?” —You on the Drink Champs Podcast
Full statement from Adidas
“adidas does not tolerate anti-Semitism and any other type of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the values of diversity and inclusion, mutual respect and company equity.
After careful consideration, the company made the decision to immediately end the partnership with Ye, end production of Yeezy-branded products, and stop all payments to Ye and his companies. adidas will discontinue the adidas Yeezy business effective immediately.
This should have a short-term negative impact of up to €250 million on the company’s net income in 2022 given the strong 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 provided in conjunction with the company’s upcoming third quarter earnings announcement on November 9, 2022.” –Adidas
Chart: Adidas stock price
The Ye controversy weighed heavily on the company’s performance in the market. Shares fell 3.2% in Frankfurt trading, hitting the lowest since April 2016.
But the decision likely took time and thought, because cutting yourself off from Ye means cutting yourself off from a lucrative line of business.
Ye-Adidas, by the numbers
$1.7 billion: Yeezy sales in 2021
8%: What share of total adidas sales is Yeezys
Billionaire : Which Ye won’t be without Adidas, as the deal is worth around $1.5 billion, the biggest chunk of the rapper’s net worth, according to Forbes.
Who broke ties with Ye?
🕺Less than a month after the opening of her Ye show at Paris Fashion Week, Balenciaga stated that the company “no longer has any relationship or plans for future projects related to this artist”. Ye’s look from her runway debut has been removed from Balenciaga’s website, along with a section containing the Yeezy Gap designed by Balenciaga collaboration, The Rolling Stones reported.
💼 Creative Arts Agency, which represented Ye for the tours, dropped the artist.
🎥 Film and TV Producer MRC will not proceed with the broadcast of his documentary on Ye.
Which can you drag away from Adidas?
The patent for almost all Yeezy models made is with adidas S.A.U.S. Patent and Trademark Office records showaccording to an analysis of sneaker post Sole Retrysee. This would give the sportswear brand full ownership and the right to continue producing them. But a shoe belongs to Ye alone :The Yeezy Slide. A 2020 the patent filing for it is held by You are firm Mascot Holdings, with Kanye Last namelike the inventor.
Should businesses start Ye?
Anti-Semitic statements are not the only problematic incident: Ye has been accused of stalking his ex-wife Kim Kardashian following their divorce. He donned a ‘White Lives Matters’ shirt at Paris Fashion Week and Vogue fashion editor bullied Gabriella Karefa-Johnson for criticizing it. It spread false rumors about the death of George Floyd.
Yes who suffers from bipolar disorder, might have some wiggle room for his sanity. But its influence is too great not to have repercussions in the real world. For example, on Sunday October 23, a small group of anti-Semitic protesters protested on a Los Angeles freeway with banners that read “Kanye is right about the Jews.”
“Hate groups like White Lives Matter and the Goyim Defamation League celebrate and promote Ye’s comments to advance their extremist agendas,” the Anti-Defamation League noted. in a campaign calling on Adidas to cut ties with its partner brand. “Adidas allowing Kanye to continue spewing hateful rhetoric without consequence sets a dangerous precedent by giving social influencers a free pass to be anti-Semitic.”
This story was updated with a statement from Adidas, posted after publication