Adidas has terminated its business collaboration with Kanye “Ye” West over his recent antisemitic remarks.
The athletic brand said it will no longer work with the famous rapper on their joint line of merchandise, effective immediately. Adidas said in a statement Tuesday that “it does not tolerate antisemitism and any other sort of hate speech.”
West’s recent rant suggesting that Jewish industry leaders are conspiring against him was “unacceptable, hateful and dangerous,” the company said. The comments violated the company’s “values of diversity and inclusion, mutual respect and fairness.”
Yeezy’s brand, which included a line of sneakers, will no longer be produced or sold by Adidas. Cash distributions to Ye and his companies have been discontinued.
Adidas is geared for significant revenue loss due to the end of the partnership. The Yeezy deal generated an estimated $2 billion a year, approximately 10 percent of the company’s annual revenue, Morningstar analyst David Swartz told The Washington Post. Adidas said it expects its fourth quarter sales to be reduced by $246 million as a result of the decision.
Other fashion brands, including Balenciaga and Vogue, have also cut ties with West.
West and Adidas have had a business arrangement since 2013, creating sleekly designed sports wear with the music star’s inspiration. This month, however, Adidas said it was reevaluating the relationship after West wore a “White Lives Matter” T-shirt in public.
Since 2016, when former president Trump ran for president, West has become a political provocateur, making shocking statements about abortion, black America, and other issues. He said he sympathized with the MAGA movement.
“I can say antisemitic s**t and Adidas cannot drop me,” West declared during an appearance on the Drink Champs Podcast. His diatribe against Jewish people came after he did an interview with Tucker Carlson. A portion of that interview in which West made antisemitic remarks was reportedly cut from the final edit and later obtained by the Daily Beast.
During the podcast with Drinks Champs, West spoke about George Floyd’s death in a manner that he said he suspected would be too inflammatory for the hosts to air. He then talked about his experience with censorship. “The Jewish media blocked me out. I put $100 million into J.P. Morgan and they treated me like s**t,” he said.
Adidas faced intense internal pressure from its leaders and employees to sever its collaboration with West. “We need to do better as a brand. We need to do better for our employees and we need to do better for our communities. Until adidas takes a stand, I will not stand with Adidas,” the director for trade marketing told colleagues, according to CNBC.
After Adidas’ move was announced, shares dropped 4 percent in morning trading in Frankfurt, Germany.