Adidas and Ye Settle Legal Dispute Two Years After Ending Yeezy Partnership
Two years after their partnership ended, adidas and Ye, formerly known as Kanye West, have reached an out-of-court settlement that resolves all claims related to the Yeezy collaboration. According to Reuters, adidas CEO Bjorn Gulden confirmed that both sides agreed to withdraw all claims, with no monetary payments involved.
The End of a Billion-Dollar Collaboration The adidas-Yeezy collaboration, once earning over $1 billion USD annually and contributing significantly to Ye's billionaire status, was terminated in October 2022. The decision followed Ye's controversial comments, including antisemitic statements and conspiracy theories, culminating in a now-infamous Twitter post threatening “death con 3 on JEWISH PEOPLE.” The backlash led to adidas cutting ties, despite the deal’s immense financial success.
The New York Times revealed that adidas had tolerated Ye's misconduct for nearly a decade, prioritizing profits over addressing his erratic behavior, which included antisemitic, sexually offensive remarks, and escalating demands.
Aftermath and Inventory Management Following the deal’s termination, adidas was left with $1.3 billion USD worth of Yeezy inventory. Over the past two years, the brand has continued to sell this stock, aiming to clear it by the end of 2024.
