Rapper Ye, Adidas settle legal feud over Yeezy brand split
What's the story
Adidas has settled with rapper Ye, formerly known as Kanye West, putting an end to all pending legal battles stemming from the termination of their partnership. The news was announced by Adidas CEO Bjorn Gulden during a quarterly earnings call on Wednesday (local time). The settlement comes nearly two years after Adidas chose to end its long-standing brand deal with Ye over his antisemitic remarks and other erratic behavior.
Settlement details
'No one owes anybody anything anymore': Adidas CEO
During the call, Gulden said, "Both parties said we don't need to fight anymore and withdrew all the claims." He also clarified that neither party would have to make any payments as part of this settlement. "No one owes anybody anything anymore. So whatever was is history." However, the details of the legal disputes, that were active at the time of this agreement, remain undisclosed.
Partnership history
Adidas and Ye's lucrative partnership and controversial split
Adidas enjoyed a lucrative sneaker collaboration with Ye for nearly a decade before ending their partnership in fall 2022. The decision came after a string of controversial statements and actions from the rapper, including revealing a "White Lives Matter" shirt at Paris Fashion Week and making antisemitic remarks. Before the split, Ye's Yeezy line made up for around half of Adidas's total profits, analysts said.
Post-split impact
Adidas's financial losses and legal action post-split
The end of the partnership left Adidas with $1.3 billion worth of unsold Yeezys, leading to a $655 million loss in sales for the last three months of 2022. Soon after announcing the split, Adidas demanded Yeezy to return $75 million allegedly deposited into its accounts. When Yeezy refused, Adidas filed a case in federal court seeking an order to immediately freeze those funds. Now, the remaining Yeezy stock will be sold off by the end of the year.