Adidas and Ye Reach Settlement After Two-Year Partnership Termination
In a surprising turn of events, adidas and Ye, the artist formerly known as Kanye West, have put an end to their legal battle with an out-of-court settlement. The settlement resolves all claims related to the German sportswear brand’s Yeezy collaboration, according to Reuters.
Adidas CEO Bjorn Gulden stated via Business of Fashion that both parties have agreed to move on and withdraw all claims. He also clarified that no payments were involved in the agreement. “No one owes anybody anything anymore. So whatever was is history,” Gulden added.
Ye’s Billion-Dollar Partnership with adidas Comes to an End
Ye, who had a highly-successful partnership with adidas that earned him upwards of $1 billion USD per year and pushed him to billionaire status, lost the collaboration after making a series of offensive statements in October of 2022.
The sportswear label officially cut ties with the rapper following a Twitter rampage where he challenged Jewish identities, perpetuated harmful conspiracy theories, and made threats towards Jewish people. The New York Times later reported that adidas had been tolerating Ye’s misconduct behind the scenes for nearly a decade.
According to the report, Ye had a history of making antisemitic and sexually offensive comments, displaying erratic behavior, and making ever-escalating demands throughout the partnership. Despite this, adidas’ leaders turned a blind eye to his behavior in pursuit of profits.
Adidas Continues to Sell Down $1.3 Billion Worth of Yeezy Product
After the partnership was terminated, adidas was left with approximately $1.3 billion USD worth of Yeezy product. Over the last two years, the brand has been working to sell down this inventory and aims to conclude sales of the collaborative line by the end of this year.
