Despite Severing Ties With Kanye West, Adidas to Make Use of “design rights” and Continue the Sale of Yeezys

Despite Severing Ties With Kanye West, Adidas to Make Use of “design rights” and Continue the Sale of Yeezys

Kanye West, the richest rapper in the world, finally got the short end of the stick. His world, social media antics, and far too many controversies finally caught up to him. His recent scandals, including ‘White Lives Matter’ and his anti-Semitic rhetoric, resulted in several of his business partnerships ending. While some big names like Gap, Balenciaga, and CAA were on the list, his most notable split was with the German sports brand, Adidas.

The Adidas-Yeezy deal was valued at about $1.5 billion. Ye incurred a heavy loss owing to this broken deal, which allegedly even cost Ye his billionaire tag according to Forbes. However, looks like Adidas has found a way to keep selling Yeezys despite severing ties with the rapper.

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Adidas plans to sell the Kanye West Yeezy collection without the rapper

Following Kanye West‘s “unacceptable, hateful, and dangerous” comments on social media, Adidas felt forced to take action against him. So, at the end of last month, Adidas terminated its decade-long collaboration with the Power singer. This meant a cease in the production of all Yeezy products with “immediate effect.” However, on Wednesday, November 2, Adidas called a meeting to review its quarterly earnings.

At that discussion, CFO Harm Ohlmeyer disclosed their plans to “leverage the existing inventory,” regarding West’s shoes. According to this statement, Adidas will continue the sale of the Donda rapper’s collection, but without his name. Neither Ye nor his brand name Yeezy will be in any way associated with the footwear line anymore.

Adidas is the sole owner of all design rights registered to existing products. We intend to make use of these rights as early as 2023,” claimed Ohlmeyer.

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While the company also had to deal with losses after its split with Ye, Ohlmeyer reiterated the media had heavily “overstated” the profitability and success of their collaboration with Ye. Moreover, it seems like by cutting out the cost of royalties and marketing fees for the brand, Adidas might just be able to break even by next year. 

How do you think this decision will impact Kanye West? Let us know in the comments.

 

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