Adidas Confirms Plans to Sell Kanye West’s Designs Without Yeezy Name, Will Save About $300 Million – Report
According to a CNN Business report published on Wednesday (Nov. 9), Adidas confirmed previous reports that despite terminating its longstanding business relationship with Kanye West back in October, the world-famous sports apparel brand will resume the sale of sneakers and clothing previously designed by the Chicago rapper-producer. Although Adidas fully intends to remove the Yeezy name and associated branding from their products, the financial benefits of Ye's designs, which they own, are too great to put to discontinue altogether.
The CNN report says during a quarterly earnings call that took place on Wednesday, the shoe giant announced canceling their partnership with Kanye West has resulted in $500 million of lost revenue for Adidas and has cost more than $250 million in profit. On the flip side, the company expects that selling the designs that were formerly under the Yeezy brand will now save the company $300 million in marketing fees and royalty payments.
According to Business Insider, Adidas made it clear on the aforementioned earnings call that they currently hold all of the licensing rights to all of the collaborative designs that were produced during Kanye's run with the company.
"Adidas is the sole owner of all design rights registered to existing product," said Adidas Chief Financial Officer Harm Ohlmeyer, according to Business Insider. "We intend to make use of these rights as early as 2023."
Adidas announced that Ye's designs will continue to be produced without the Yeezy name attached about two weeks after the company included itself among companies like Balenciaga, Vogue and Gap who have all cut ties with Kanye West. Back on Oct. 25, Adidas issued a statement listing Ye's recent anti-Semitic remarks as the primary reason for ending the partnership.
"Adidas does not tolerate antisemitism and any other sort of hate speech," the statement reads. "Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness," the statement reads. "After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies. Adidas will stop the Adidas Yeezy business with immediate effect."
XXL has reached out to representatives of both Adidas and Ye for official statements regarding the matter.