Kanye West and Adidas Settle Dispute Over Terminated Yeezy Partnership

Kanye West (Ye) and Adidas have reached a legal settlement, ending their dispute over the termination of their lucrative Yeezy fashion line collaboration. The sportswear giant cut ties with Ye in late 2022 after his controversial antisemitic remarks sparked widespread backlash.

(Kanye West)

The partnership's abrupt end, which came after Ye's inflammatory comments on social media and in interviews, left Adidas grappling with over $1 billion worth of unsold Yeezy stock. However, as part of this recent settlement, no financial compensation was exchanged between the two parties.

In 2022, Kanye West made headlines with a now-infamous post on X (formerly Twitter), where he threatened to go “death con 3 On JEWISH PEOPLE.” His remarks were swiftly condemned as hateful and unacceptable by Adidas, which cited a violation of the company's values of diversity, inclusion, and mutual respect. The termination of the Yeezy partnership reportedly cost both West and Adidas hundreds of millions of dollars in lost revenue.

In 2023, Adidas opted to sell off its remaining Yeezy inventory in batches, generating around $437 million from the first wave of sales. A portion of these proceeds was donated to anti-hate organizations, including the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, established by George Floyd's brother.

Adidas’ CEO expressed satisfaction with the resolution, stating that "No one owes anybody anything anymore." This legal closure comes nearly two years after the company's break with West, who also lost partnerships with brands like Balenciaga and was dropped by talent agency CAA in the wake of his controversial comments. West's social media accounts, including Instagram and X, were suspended around the same time.