Adidas has ended its partnership with American rapper and business mogul Kanye West.
The fashion company stated in a statement that it does not tolerate antisemitism or any other form of hate speech. Also, they went on to say that Kanye West’s recent comments were unacceptable, hateful, and dangerous.
The sale and production of his Yeezy branded products, as well as payments to Kanye and his companies, have been halted with immediate effect. Adidas has also stated that the termination of this agreement could cost the company $246 million in the fourth quarter.
Kanye West and Adidas began their collaboration in 2013, when the sporting company poached him from rivals Nike. The transaction was described as one of the most lucrative business deals between a sports brand and a non-athlete in 2016.
However, Adidas cancelled the contract after Kanye West wore a “White Lives Matter” t-shirt. According to the Anti-Defamation League, the slogan is popular among racist organisations such as the Ku Klux Klan.
Unfortunately, the rapper did not stop with the T-shirt and threatened to go Def Con 3 on Jews in a Twitter post. In addition, he appeared on the Drink Champs podcast and boasted that he can say whatever he wants and Adidas will not drop him.
Adidas shares have already dropped 5% as a result of the announcement, according to CNN. Adidas stated that on November 9, they will release additional financial information regarding the implications of dissolving this partnership.
The list of companies that have severed ties with Kanye West is growing. Balenciaga and Vogue publicly severed ties with the rapper last week, and MCR announced the cancellation of a Kanye West documentary.
Recent events have also had a significant impact on the rapper’s net worth. According to Forbes, Kanye West’s net worth is expected to fall from $2 billion to $400 million as a result of his departure from Adidas and other companies. This new net worth is based on his real estate portfolio, cash, music catalogue, and a 5% stake in his ex wife’s company Skims.
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