- Kanye West and Adidas settle Yeezy partnership dispute after two years with no financial compensation exchanged.
- The settlement concludes a lengthy legal battle, with both parties withdrawing all claims.
- The partnership was terminated in late 2022 following West’s antisemitic remarks, which cost both sides hundreds of millions.
- Adidas ended up with Yeezy stock valued over £1 billion and sold remaining products, donating proceeds to anti-hate organizations.
Adidas has announced that it has reached a settlement with rapper Ye, formerly known as Kanye West, to conclude their dispute over the sportswear brand’s decision to terminate their partnership two years ago.
The legal agreement marks the end of the acrimony between the parties, with neither side exchanging financial compensation.
According to Bjorn Gulden, Adidas CEO,
“There aren’t any more open issues, and there is no money going either way.”
Both parties have reportedly withdrawn all claims, bringing an end to the conflict. When asked about conflicts like this, Gulden explained,
“You take provisions and you have legal opinions and there are negotiations and there are settlements being done, and this is the end to it.”
The partnership between Adidas and West’s Yeezy fashion line came to an abrupt end in late 2022 following accusations of antisemitic remarks made by West on social media and in interviews.
West posted on X in 2022 that he was “going death con 3 On JEWISH PEOPLE,” sparking widespread backlash. Adidas responded by calling the remarks “unacceptable, hateful and dangerous” and stating that they violated the company’s values of diversity and inclusion, mutual respect, and fairness.
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The termination of the partnership reportedly cost both parties hundreds of millions of dollars. However, in a surprising turn of events, Gulden defended West during a quarterly earnings call, describing him as “one of the most creative people in the world, both in music and what I call ‘street culture’.” He added,
“And then, as creative people, he did some statements which wasn’t that good. And that caused Adi to break the contract and withdraw the product.”
Adidas ended up with Yeezy stock worth over £1bn after the partnership’s dissolution. Instead of destroying the inventory, the company decided to sell its leftover Yeezy products in batches, donating part of the proceeds to anti-hate groups.
Kanye West and Adidas Withdraw All Legal Claims to Reach Settlement
— Rolling Stone (@RollingStone) October 29, 2024
More: https://t.co/y5uklxJPWJ pic.twitter.com/98knf5zydn
In 2023, Adidas made around $437m (£336.2 m) from its first sale of leftover sneakers, with donations going to organizations like the Anti Defamation League and the Philonise & Keeta Floyd Institute for Social Change run by George Floyd’s brother.
West faced significant backlash following his controversial comments, including being banned from X and Instagram and dropped from brand partnerships.
CAA, one of the biggest celebrity talent agencies in the US, also cut ties with the musician. Despite these setbacks, the settlement between Adidas and West marks a new chapter in their relationship, bringing closure to a highly publicized dispute.
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