Kanye West out of billionaires’ club after Adidas cuts ties: Forbes
Oct 26, 2022 - 02:41 AM
HOUSTON, United States (AA) – The artist formerly known as Kanye West can no longer count himself among the elite ranks of America’s billionaires after Adidas cut ties with Ye following his repeated anti-Semitic rhetoric.
Adidas cut ties Tuesday with him after the company faced increasing scrutiny on its silence regarding the musician’s racist and anti-Semitic rhetoric.
“Adidas does not tolerate anti-Semitism 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,” the company said in a statement.
“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,” it added.
With the sponsorship dump, West is now off of Forbes’ billionaires list, with his net worth slashed more than half and calculated at $400 million.
His deal with Adidas was estimated at $1.5 billion and the Yeezy business earned more than $500 million in royalty payments and marketing fees in the first four full years of the Adidas deal through 2020, according to Bloomberg.
Adidas said it was expected to take a hit of up to $246 million to its net income this year from dropping West.
Forbes said the majority of Ye’s wealth comes from a combination of real estate, cash, his music catalog and his stake in the clothing brand Skims, owned by his ex-wife Kim Kardashian.
Adidas was the final nail in the coffin for West’s swift financial downfall.
His relationships with French fashion house Balenciaga and fashion magazine Vogue were also terminated, in addition to his clothing line with The Gap and his sponsorship with JP Morgan Chase Bank.
“I can say anti-Semitic (things), and Adidas can’t drop me,” Ye recently boasted on a podcast.
Adidas said otherwise on Tuesday after remaining silent for weeks, with the fallout obliterating West’s net worth and ending his billionaire status.