Topline
Adidas announced today it will start selling some of its remaining Yeezy products at the end of this month—one of the final moves in the company’s dissociation with rapper Kanye West following a string of antisemitic comments he made last year.
HOLLYWOOD, CA – JUNE 28: Kanye West at Milk Studios on June 28, 2016 in Hollywood, California. … [+]
Key Facts
The existing Yeezy products still held by Adidas are said to be worth $1.3 billion—a range of existing designs will be available exclusively through Adidas’ website and app, according to a statement.
A “significant amount” of proceeds will be donated to organizations like the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, the company said, though it did not provide specifics.
The products have not been available on a retail basis since Adidas cut ties with West in October last year.
Resellers have continued to sell the sneakers for far above initial retail prices—one version of Yeezy Boost sneakers that once sold for a retail price of $200 is currently selling for around $450 on resale marketplace StockX.
What We Don’t Know
It is unclear if West will find a different production partner for the Yeezy brand. Adidas still retains the rights to Yeezy product designs—but not the Yeezy name. A spokesperson for Yeezy did not immediately respond to a request for comment from Forbes regarding the future of the brand’s production.
Forbes Valuation
We estimate West’s net worth at $400 million.
Key Background
Adidas terminated its partnership with West last October. Ties were cut after the rapper made antisemitic comments on social media and in multiple interviews—including one with right-wing conspiracy theorist Alex Jones in which West praised Adolf Hitler. Prior to today’s announcement, Adidas once planned to continue selling the Yeezy design stripped of West’s brand name. Adidas finance chief Harm Ohlmeyer said in a November earnings call that the company was the sole owner of the shoe design rights even if it did not own the name. This year, Adidas revealed that the terminated partnership greatly contributed to the $540 million net loss it experienced in the last quarter of 2022. Following the termination, West’s net worth plummeted and resulted in the rapper falling off Forbes’ billionaire list.
FURTHER READING
Adidas to start selling Yeezy shoes at the end of May (Reuters)
Adidas to Start Selling $1 Billion Pile of Yeezy Sneakers, Donate Proceeds to Charity (WSJ)
Kanye West’s Antisemitic, Troubling Behavior—Here’s Everything He’s Said In Recent Weeks (Forbes)
Source: https://www.forbes.com/sites/antoniopequenoiv/2023/05/19/13-billion-worth-of-remaining-yeezy-sneakers-will-start-selling-this-month-adidas-announces/