Kanye West said he bumped into the CEO of adidas on Monday. The Yeezy CEO posted on Instagram, “I just bumped into the CEO of adidas.”
The meeting of the two CEOs comes after Adidas faced significant challenges after severing ties with Kanye West’s Yeezy brand, which accounted for 40% of its profits last year. The fallout led to a projected operating loss of up to €700 million in 2023 due to unsold Yeezy shoes. The company’s new CEO Bjørn Gulden acknowledged the need for rebuilding and improving various aspects of the business. Despite forecasting a modest sales increase, Adidas expects a substantial decrease in operating profit. Shares had dropped by as much as 10% in response to the news.
In 2013, Kanye signed a contract with Adidas for 15% of royalties off of Yeezy sales, which was enough to catapult Ye to billionaire status according to Fast Company.
Since leaving the partnership with the company his wealth has been significantly reduced.
Ye’s agreement with Adidas included an unusual provision that prevented him from undergoing long-term mental health treatment. Though legal, this clause became significant when, amidst negotiations for an extension in 2016, Adidas introduced additional conditions, including a morals clause allowing termination based on certain behaviors.
This clause notably included a stipulation that 30 consecutive days of mental health or substance abuse treatment could lead to contract termination. While Adidas had the legal right to terminate the deal, the terms of this clause were atypical, especially considering Ye’s later disclosure of bipolar disorder in 2016 and issues with alcoholism in 2020.
Alexandra Roberts, a law and media professor, highlighted the uniqueness of such a clause, suggesting that Adidas may have tailored it based on their knowledge of Ye. Despite legal precedent for morals clauses in contracts, the inclusion of conditions related to mental health treatment raises ethical questions, particularly when applied to individuals facing clear mental health challenges.
Kanye’s past criticisms of Adidas for unauthorized use of his designs signaled a rift in their partnership.
Ari Emanuel, CEO of Endeavour, had called for action from Kanye’s business partners in response to his inflammatory remarks which included “going Def Con” on groups of people.
The Monday meeting with Adidas CEO also comes a day after West’s unconventional Super Bowl LVIII ad for his YEEZY line yielded a hefty profit of $19.3 million, according to the rapper’s Instagram post sharing details from his accountant.
Fans celebrated his success and praised his resilience in the face of criticism, with some even taunting Taylor Swift in support of Kanye. They lauded his ability to connect with his audience and appreciated his affordable merchandise strategy. The substantial earnings underscored Kanye’s enduring influence and financial prowess in fashion.
His latest release is the collaborative album with Ty Dolla Sign, “Vultures 1” is No. 1 in 107 countries on Apple Music and No. 1 in 13 countries on iTunes.
