Photo Credit:: AP Photo
Adidas and Kanye West have reached an out-of-court settlement that officially ends their long-standing legal battles and contractual ties, almost two years after the fallout from Ye's controversial antisemitic comments led to the termination of their partnership. According to Adidas CEO Bjørn Gulden, both parties agreed to withdraw their claims without financial exchange. “There isn’t any more open issues, and there is no… money going either way, and we both move on,” Gulden stated.
The dissolution of their relationship, which was made official in October 2022, was triggered by public backlash after Ye’s inflammatory statements. At the time, Adidas condemned his remarks as “unacceptable, hateful and dangerous,” emphasizing that they violated the company's commitment to "diversity and inclusion, mutual respect and fairness."
The decision to end the partnership was not without financial impact—Adidas anticipated a $246 million loss in net income and saw over $100 million in revenue decline compared to previous years, despite earning around $215 million from leftover Yeezy inventory sales.
In the wake of the separation, Adidas announced it would responsibly offload the remaining Yeezy products, beginning with the release of the Yeezy Boost 350 V2 in “Steel Grey” and other popular models, through their online platforms. Gulden said, “We will continue to carefully sell off more of the existing Yeezy inventory.”
Ye expressed discontent with Adidas's approach to handling the remaining Yeezy inventory, alleging on social media that Adidas was “putting out
fake colorways that are not approved” and continuing sales without compensating him. He further claimed that Adidas was using "contract clauses and 50 years of business experience to rape an artist,” a comment that stirred public debate. In response, Ye urged his supporters to refrain from purchasing the remaining Yeezy stock.
Despite the rocky end to one of the most successful collaborations in Adidas's history, Gulden conveyed a nuanced view of Ye, describing him as "one of the most creative people in the world." He reflected on the partnership’s unfortunate breakdown, attributing the end to statements Ye made that "came across that way" but might not have reflected his actual intent.
The dissolution of their relationship, which was made official in October 2022, was triggered by public backlash after Ye’s inflammatory statements. At the time, Adidas condemned his remarks as “unacceptable, hateful and dangerous,” emphasizing that they violated the company's commitment to "diversity and inclusion, mutual respect and fairness."
The decision to end the partnership was not without financial impact—Adidas anticipated a $246 million loss in net income and saw over $100 million in revenue decline compared to previous years, despite earning around $215 million from leftover Yeezy inventory sales.
In the wake of the separation, Adidas announced it would responsibly offload the remaining Yeezy products, beginning with the release of the Yeezy Boost 350 V2 in “Steel Grey” and other popular models, through their online platforms. Gulden said, “We will continue to carefully sell off more of the existing Yeezy inventory.”
Ye expressed discontent with Adidas's approach to handling the remaining Yeezy inventory, alleging on social media that Adidas was “putting out
fake colorways that are not approved” and continuing sales without compensating him. He further claimed that Adidas was using "contract clauses and 50 years of business experience to rape an artist,” a comment that stirred public debate. In response, Ye urged his supporters to refrain from purchasing the remaining Yeezy stock.
Despite the rocky end to one of the most successful collaborations in Adidas's history, Gulden conveyed a nuanced view of Ye, describing him as "one of the most creative people in the world." He reflected on the partnership’s unfortunate breakdown, attributing the end to statements Ye made that "came across that way" but might not have reflected his actual intent.
