Kanye West is regarded as one of the most well-known figures in the hip-hop industry. In addition to that he is also a brilliant businessman. However, his businessman reputation is waning after adidas recently terminated connection with Ye. Now Adidas has just released another cue.
According to Bloomberg, after terminating its collaboration with artist and designer Ye, previously Kanye West, Adidas AG plans to market the currently available Yeezy product designs under its own trademark. Adidas management has indicated that it will start selling the products under the company’s brand at the beginning of next year.
In a note to clients on Tuesday, analyst Edouard Aubin of Morgan Stanley stated :
“Looking ahead, on our understanding, the company will not sell any Yeezy-branded products and all Yeezy products will be branded under Adidas brand.”
After Ye made antisemitic remarks, the lucrative partnership—which Adidas has called one of the most successful partnerships in the business ever—was terminated. The sportswear maker said it “does not tolerate antisemitism and any other sort of hate speech” and said that his recent comments were “unacceptable, hateful and dangerous.” Adidas said they violated the company’s “values of diversity and inclusion, mutual respect and fairness.”
“Adidas has the rights to existing Yeezy product designs and can sell these using Adidas branding (not Yeezy branding) following the termination of the Yeezy partnership, which Adidas intends to do” in the first quarter of next year, RBC analyst Piral Dadhania said in a note. “Speaking to the company, it believes it can limit the loss of revenues through this strategy, and will also save on expenses related to royalty and marketing fees no longer payable in 2023.”
An inquiry for comment was not immediately answered by Adidas spokesman. Adidas anticipates that the Ye split will cost it €250 million ($247 million) in lost revenue this year. The contract between Yeezy and Adidas was supposed to last through 2026. Adidas shares fell 3.2% at the close of German trading.
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