Adidas and Kanye West Settle Dispute, Move Forward Without Financial Exchange
Adidas has officially settled its dispute with rapper Kanye West, who now goes by the name Ye, after two years of separation. In a statement, CEO Björn Gulden emphasized that both parties have no financial obligations to each other. 'We owe him nothing more and he owes us nothing more,' Gulden explained, clarifying that the agreement included no monetary transactions. This conclusion allows the company to put the matter behind them, with Gulden affirming, 'Whatever happened is history.'
The decision to part ways with Ye came after several controversies surrounding his public statements, including those deemed racist and anti-Semitic. Ye had significantly influenced Adidas's brand prior to the split, particularly with his successful Yeezy shoe line, which had generated much interest and profits for the company.
In a strategic move, Gulden opted to sell off the remaining Yeezy inventory rather than destroying it, aiming to recoup some financial losses from the fallout. Revenue from these sales has benefited various initiatives, as Adidas pledged a portion of the proceeds to charity. According to CFO Harm Ohlmeyer, the remaining Yeezy stock currently valued at 50 million euros had originally been estimated at a worth of 500 million euros.
Adidas is now projected to sell the leftover Yeezy shoes at cost by year's end. In relation to the settlement, the company also made a significant gesture by dissolving reserves of 100 million euros that were then donated to the Adidas Foundation. To date, the company has channeled nearly 250 million euros through donations stemming from Yeezy sales.
With this settlement, Adidas appears determined to move on from a tumultuous chapter while reinforcing its commitment to corporate social responsibility.
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