Kanye West, now officially known as Ye, may have to prepare himself for Adidas selling his iconic Yeezy shoes in front of him but with new branding.
The rapper, who was partnered with Adidas since 2013, recently had his relationship dissolved by the company, which decided to separate itself from Ye after he began posting antisemitic comments on social media platforms. West's public comments against Jewish people broke terms of service on various social media platforms and resulted in massive public discussion on the severity of West's comments and their impact on Jewish people.
Throughout the mass public debate, West saw prominent brands such as Balenciaga, Adidas, Gap, and more sever ties with him. Perhaps the largest hit to West's bank accounts was the Adidas deal which was expected to be worth anywhere between $150 - $200 million, with Adidas backing that rough estimation up during its recent quarterly earnings call where it said the deal with Ye is expected to cost the company $247 million throughout 2022, causing its expected annual revenue to be reduced by about $502 million.
However, Adidas did state that during 2023 it will save approximately $302 million as it won't have to pay for any royalties and marketing costs linked to Ye's deal. During Adidas' earnings call, the company explained that it owns the designs it made while it was partnered with Ye, which means it's within its right to re-sell the designs under a different brand.
"Adidas is the sole owner of all design rights registered to existing product. We intend to make use of these rights as early as 2023," said Adidas Chief Financial Officer Harm Ohlmeyer.
The one exception to this would be the Yeezy Slide, as West officially owns the patent for that design.