Adidas has announced that it has come to an amicable agreement with rapper Kanye West, who now goes by the name Ye, effectively concluding all legal matters between them without any monetary exchange. This development marks the end of a contentious relationship that began in 2014 and soured in 2022 following West's antisemitic remarks.
During a conference call with reporters, Adidas CEO Bjorn Gulden confirmed that there are no outstanding issues between the two parties. “There aren’t any more open issues, and there is no money going either way,” he stated, although he did not provide further details about the specifics of the agreement. He emphasized that the past conflicts are now behind them, saying, “The drama with West belongs to the past.”
The partnership between Adidas and West was one of the most successful collaborations in the sportswear industry, with the Yeezy brand significantly contributing to West's billionaire status. However, the relationship deteriorated after West made a series of inflammatory comments on social media in October 2022, prompting Adidas to sever ties, citing his remarks as “unacceptable, hateful and dangerous.” The company expressed a commitment to fighting antisemitism and hate speech in all forms.
Following the partnership's termination, Adidas faced a substantial challenge, as it was left with an inventory of Yeezy products valued at approximately €1.2 billion. The company has since been selling this stock in batches and donating the proceeds to non-governmental organizations, including its own foundation established to support anti-discrimination initiatives. Adidas plans to sell the remaining Yeezy inventory by the end of 2024.
Gulden reflected on the situation, expressing sadness over the loss of the collaboration, which he deemed one of the most successful in history. He noted that the fallout from West's comments had significant financial implications for Adidas, stating, “It’s very sad... when you work with third parties, that could happen.”
In light of this agreement, Adidas reported a 7% increase in sales for the third quarter of 2023, totaling €6.4 billion ($7 billion). Gulden also announced that the company has raised its financial guidance for the year, attributing the positive performance to successful shoe collections such as Samba, Gazelle, and Campus.
As both parties move forward, the resolution of their legal disputes signals a potential new chapter for Adidas, allowing the company to refocus its efforts on its other popular products while leaving the controversies of the past behind.
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