After a few strenuous months with the relationship between Ye and Adidas fracturing, Adidas finally confirmed that they are terminating their partnership with Ye. According to Adidas, this is due to his recent comments and hateful speech, which has violated the company’s values of diversity and inclusion. In a statement released on October 25, Adidas made it very clear that they do not tolerate antisemitism and any other sort of hate speech.
In the press statement the company said “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.” Adidas confirmed that even though this will affect them negatively, the impact will be short term, and they are estimating the loss from this fall out to be somewhere around €250 Million.
Even though the Adidas x Ye partnership was worth billions of dollars, estimated at $1.7 Billion worth of revenue in the last year alone, this relationship has been strained for some time now since Ye accused Adidas of stealing his designs for the Adilette 22 slides and not getting his approval for Yeezy Day. At the beginning of October, Adidas announced that they are placing the contract with Ye under review. Clearly, Ye’s most recent actions at Paris Fashion week and his antisemitic comments and the social media backlash has made it impossible for Adidas to carry on with this partnership.
It’s a big question as to what happens next for both Adidas and Ye. Adidas has many collaborations but the one with Kanye West has been by far the most lucrative and important. Adidas is a strong company with a long history and while this latest news is a major obstacle, they have several options in how they decide to proceed with their business strategy. It’s less easy to predict what happens next with Kanye West, but we will surely still be hearing from him in the near future.