Sportswear giant Adidas breaking off its partnership with Kanye West came at a massive cost – an expected loss of $250 million – and the company plans to continue selling the Yeezy footwear under new branding.
Adidas to sell Kanye West shoe designs without Yeezy name
eBay and online selling sites went into a frenzy when it was announced that Adidas was cutting ties with the Yeezy brand. But for people who have been worried they could no longer get their hands on the Yeezy designs, they’ll still be able to do so – only without the Yeezy name.
As numerous companies, corporations and individuals cut ties with Kanye West in the wake of his anti-Semitic comments, the most notable was the end of his partnership with German sportswear manufacturer Adidas.
Adidas announced on Wednesday that it planned to strip the Yeezy name from shoes and apparel bearing the branding and will continue to sell the products. CNN Business reported that the company is the sole owner of all Yeezy line design rights for both existing and future colors and versions. The company expects to save around $300 million in royalty payments and marketing fees by selling sneakers under Adidas branding.
“Going forward, we will leverage the existing inventory with the exact plans being developed as we speak,” said Adidas finance chief Harm Ohlmeyer.
Adidas said they will be selling more of the Ye-inspired shoes starting as early as 2023, Insider reported.
End of partnership massive loss for Adidas and Kanye
The revenue from Adidas’ partnership with the musician who now goes by Ye, formally known as Kanye West, and his Yeezy name and branding on sneakers and apparel was lucrative.
The decision to drop Yeezy came at an enormous cost for Adidas, with the company projecting a loss of around €250 million ($251.56 million), down from a target of around 500 million euros laid out on Oct. 20 before terminating the partnership on October 25, CNBC reported.
West loses billionaire status
Immediately following the October 25 announcement of the termination of the deal between Kanye West and Adidas, Forbes claimed an immediate loss of income ended Ye’s billionaire status. When all was said and done, Forbes claimed West’s net worth would plummet to somewhere around $400 million. Two years ago, West’s net worth was valued at around $1.3 billion, TMZ reported.
