After Two Weeks, Adidas Severs Ties With Kanye West

Adidas is officially ending its relationship with Ye (formerly known as Kanye West) following a weekend of intense pressure to drop the artist following a string of recent antisemitic remarks. "Adidas does not tolerate antisemitism and any other sort of hate speech," the German sportswear company said in a statement on Oct. 25. "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," the statement continued. "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 confirmed it would stop the Adidas Yeezy business with an "immediate" effect. The brand, which has lowered its financial forecast a number of times in the past few months, predicted the break with Ye would result in a "short-term" negative impact of up to $246 million (€250 million) on profits in the final quarter of 2022. According to the terms of the licensing deal with Ye, it will remain the sole owner of all design rights to existing products, including new colorways (aka, variations of Yeezy's existing designs). The company will give more details on how cutting off Ye will affect its business during its upcoming earnings announcement Nov. 9. Chorus of condemnation For the past two weeks, the fashion designer and rapper has been spreading antisemitic conspiracy theories in interviews and on social media. His remarks earned him bans from Twitter, Facebook and Instagram. He generated further outrage for wearing a “White Lives Matter” T-shirt during his runway show at Paris fashion week in early October. The rapper boasted in mid-October that he could say "antisemitic things" without repercussion from Adidas. Parler Rhymes With Ye: The Former Kanye West Agrees to Acquire the Controversial App As late as the weekend beginning Oct. 21, Adidas released a new sneaker under the Yeezy name. On Oct. 24, Yeezy and Adidas were still advertising active roles on LinkedIn including a brand position based in Los Angeles. Other brands, including Spanish fashion house Balenciaga, have cut associations with the artist in the past week. While demands grew louder for Adidas to drop Ye on Monday, his longtime agent CAA responded to the residual rancor and dropped him as a client. A documentary from MRC was also shelved, with producers saying they could not "support any content that amplifies his platform." Earlier this year, Ye and Gap “wound down” their planned decadelong brand partnership after two years when he accused the retailer of breaching its contract. Over the weekend, the chorus of condemnation against Adidas rose after a small contingent of white supremacists expressed support for his antisemitic rhetoric by unfurling a banner over a Los Angeles freeway. Consumers, celebrities and activists largely perceived Adidas' silence as inaction. The brand's social media feed was flooded with messages denouncing its continued association with Ye. A petition was circulated urging Adidas to cut ties with the rapper. Among those who spoke out were Jewish NGO the Anti Defamation League (ADL), along with Reese Witherspoon, Jamie Lee Curtis and Eric André. Even Ye's ex-wife, Kim Kardashian, addressed the situation indirectly Monday with a post intended to show solidarity with the Jewish community along with a call to reject hate. Adidas' cautious path Adidas shares fell 4% on the morning of Oct. 25 after early reports suggested it was gearing up to sever the partnership, which has been successful since its launch in 2013. The company already initiated a review of the partnership Oct. 6 following the "White Lives Matter" incident but had been tight-lipped ever since. Despite being a magnet for controversy, Ye's career has seen him enjoy a steady stream of deals with major fashion brands. However, in the last 12 months, questions have been raised about whether his statements were aligned with their brand values. It's believed Yeezy sales could account for as much as 10% of Adidas' total revenues. The financial blow for the brand comes as it issued its second profit warning in the space of three months. Prior to this latest provocation, Adidas previously credited its partnership with Ye as having a “tremendous impact” on its business.

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Adidas Ends Relationship With Kanye West Over ‘Offensive Behavior’

Adidas will take an immediate $246 million hit by terminating Yeezy product line deal

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