Adidas cuts ties with Kanye West
Adidas has now joined CAA, Balenciaga, attorney Camille Vasquez, and other former collaborators and business partners in cutting ties with Kanye West, after the rapper made antisemitic statements in interviews and on social media. They said that their partnership would be terminated immediately, with production of his products and payments to him and his companies stopped.
A statement on Adidas' website reads:
adidas does not tolerate antisemitism and any other sort of hate speech. 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.
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.
This is expected to have a short-term negative impact of up to €250 million on the company’s net income in 2022 given the high seasonality of the fourth quarter.
adidas is the sole owner of all design rights to existing products as well as previous and new colorways under the partnership. More information will be given as part of the company’s upcoming Q3 earnings announcement on November 9, 2022.
Kanye had previously taunted Adidas on his October 16 appearance on N.O.R.E. and DJ EFN's Drink Champs podcast, saying, "I can say anti-Semitic things, and Adidas can’t drop me. Now what? Now what?" The episode has since been taken down.
Meanwhile, New York Times reports that Kanye's contract with his longtime record label, Def Jam, expired in 2021, and his own G.O.O.D. Music label is no longer affiliated with the label. A Def Jam representative declined to comment to the Times about the matter.
UPDATE: After formally ending their partnership with Kanye last month, Gap Inc also announced they'd be further distancing themselves from him, and taking "immediate steps" to remove Yeezy Gap product from their stores; they've also shut down the Yeezy Gap website. "Our former partner’s recent remarks and behavior further underscore why," a statement from Gap reads. “Antisemitism, racism and hate in any form are inexcusable and not tolerated in accordance with our values.”