German designer, Adidas has severed ties with US rapper, music producer and designer, Ye, formerly known as Kanye West.
Adidas AG will absorb a hit to earnings of up to €250 million ($247 million) this year to end its partnership with Ye following a rash of offensive behavior from the rapper and designer.
The German sports company released an official statement on its website where it said it is cutting ties with Ye with immediate effect over antisemitism.
“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 company said in a statement.
The Press Statement reads….
Adidas does not tolerate antisemitism and any other sort of hate speech. 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.
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.
This is expected to have a short-term negative impact of up to €250 million on the company’s net income in 2022 given the high seasonality of the fourth quarter.
adidas is the sole owner of all design rights to existing products as well as previous and new colorways under the partnership. More information will be given as part of the company’s upcoming Q3 earnings announcement on November 9, 2022.