Adidas Drops Ye Partnership
1410 Daily Digest
Sportswear company Adidas announced it is immediately ending its collaboration with Ye, formerly known as Kanye West, over a series of antisemitic interviews and controversial social media posts. After increased pressure from consumers and staff, the brand announced it will end production of the popular Yeezy products and stop all payments to Ye and his companies. The news comes months after Ye publicly challenged the brand over ownership of the design. Yeezy products represent an estimated 4% to 8% of sales for Adidas, and executives of the German-based company estimate it will lose nearly $247M in 2022 net income. Ye is worth an estimated $2B—without the Adidas deal, the rapper is at risk of losing approximately $1.5B. See a timeline of the relationship here. Separately, Gap announced it will halt the sale of Yeezy Gap products, joining a growing list of people and companies distancing themselves from Ye, including Balenciaga, talent agency CAA, and Vogue.