In October 2022, Kanye West faced a huge downfall, with all of his business partnerships going down the drain. After he received harsh criticism for a series of anti-Semitic comments, Balenciaga dropped him, the CAA talent agency dropped him, and G.O.O.D Music no longer signed him to Def Jam.
As a result, his widespread fortune was left in ruins, and his market valuation plummeted. Nevertheless, he was still considered the wealthiest figure in hip hop thanks to the Yeezy brand he owns and partnered with Adidas to create.
In an interview with Forbes in 2019, Kanye revealed that he still owned 100% of the Yeezy line, despite partnering with Adidas to produce it. This was a move that Ye was hoping would give him more creative control and ownership of the brand.
He also hoped to use the Yeezy brand to launch new designs. But that dream quickly turned into a nightmare for the German athletic brand.
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According to a report from the Financial Times, Adidas has been having trouble selling its inventory of Yeezy sneakers valued at more than $500 million after cutting ties with Kanye. The company reportedly has been trying to sell the items under its own brand name, but they’re finding it tough.
The Yeezy brand has made billions of dollars since its inception and is a major part of Adidas’s revenue. It accounted for 7 percent of its sales in 2021, totaling $1.8bn.
It’s estimated that if Adidas doesn’t find a way to sell the shoes, they will take a significant hit in 2023. This will cause the company to lose up to EUR 1.2 billion in revenues, and operating profits will be impacted by a drop of up to EUR 500 million.
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Adidas has reportedly reached a deal with Kanye West to avoid a similar fate. The two companies will resume collaborating to sell the rest of the Yeezy sneakers.
However, one exception to the Yeezy deal is the Yeezy Slide. It has a design patent that was filed in 2018.
This is an interesting twist to the story. If Kanye does leave Adidas, the Yeezy Slide could be one of the models he might sell.But if he does, will Adidas let him take it with him? That’s a question that could take a while to answer.
It would be interesting to see if the pair could come to an agreement that allowed them to both walk away from the partnership in good standing. If they did, it would be a very bold move by the German athletic brand. But if they didn’t, then it could be the end of their Yeezy line as we know it. Keep an eye on this blog for future updates! If you have any questions about this, don’t hesitate to ask us in the comment section below.
