Adidas and Kanye West Reach Settlement, Ending Legal Dispute Over Yeezy
Adidas and Kanye West, also known as Ye, have officially ended their two-year legal battle after Adidas cut ties with the rapper in 2022 over his antisemitic comments.
Adidas’ CEO, Bjorn Gulden, announced the resolution on Tuesday, stating that all claims have been withdrawn and there are now no financial obligations for either side.
“There isn’t any more open issues, and there is no... money going either way,” Gulden confirmed, adding that both parties agreed, “we don’t need to fight anymore.”
Why did Adidas and West cut ties with each other?
Adidas decided to end their working relationship with West after West had been widely condemned for antisemitic remarks on social media, including a statement that he intended to go “death con 3 on Jewish people,” which drew backlash from his followers, celebrities, and his former wife, Kim Kardashian, who said, “hate speech is never OK or excusable.”
The fallout from West’s antisemitic remarks initially led Adidas to halt production and sales of their popular Yeezy line.
As a result, the company was left with around €1.2 billion worth of Yeezy stock, which they decided to sell in batches, pledging a portion of proceeds to charitable causes like the Anti-Defamation League and the Foundation to Combat Antisemitism.
Adidas initially faced criticism and financial losses after cutting ties, as they projected a hit of around $246 million in net income. However, the company stood by their decision, emphasising that West’s comments “violate the company’s values of diversity and inclusion, mutual respect and fairness.”
Despite ending the collaboration, Yeezy products have remained popular on the resale market, often fetching high prices even as Adidas has started selling off the remaining stock at a discount. Adidas made an estimated $215 million from Yeezy sales this year, though it’s a significant drop from previous years’ earnings.
This settlement marks a final chapter in the Adidas-Yeezy saga, which began with a successful collaboration in 2014. Yeezy had been a major driver of sales, but Adidas’ decision to break away aligns with its commitment to maintaining company values, even at the expense of profits.
With no remaining legal issues, Adidas has opted to move forward, leaving the drama behind as the company seeks to sell its remaining Yeezy inventory by the end of 2024.
