Adidas has ended its partnership with Kanye West, the sporting goods company announced on Tuesday, in response to the American rapper and designer’s recent offensive behavior.
Adidas “has taken the decision to terminate the partnership with” Kanye West immediately, “end production of Yeezy branded products and stop all payments to Ye and his companies” pic.twitter.com/rE2Ze3XsWq
— philip lewis (@Phil_Lewis_) October 25, 2022
Kanye West’s lawyer did not respond to a request for comment.
Ending the partnership and production of Yeezy branded products, as well as ceasing all payments to Ye and his companies, will have a “short-term negative impact” of up to $250 million on Adidas’ net income this year, according to the company, partly because the Christmas quarter typically has higher demand.
Adidas suspended the partnership earlier this month “after repeated efforts to privately resolve the situation.”
Ye has courted controversy in recent months by publicly terminating major corporate alliances and through social media outbursts against other celebrities. His Twitter and Instagram accounts were blocked, and the social media platforms removed some of his anti-Semitic online posts.
Earlier this year, in now-deleted Instagram posts, the multiple Grammy award-winning artist accused Adidas and U.S. apparel retailer Gap Inc (GPS.N) of failing to build contractually promised permanent stores for his Yeezy fashion line.
He also claimed that Adidas stole his designs for its own products.
According to Telsey Advisory Group, Yeezy generates approximately 1.5 billion euros ($1.47 billion) in annual sales for Adidas, accounting for slightly more than 7% of total revenue.