CEO of Adidas Predicts A 1.2 Billion Dollar Loss Over Kanye West’s Unsold Yeezy Merchandise

CEO of Adidas Predicts A 1.2 Billion Dollar Loss Over Kanye West’s Unsold Yeezy Merchandise
Ye formerly Kanye West's contract with Adidas

The New Chief Executive Officer for Adidas, Bjorn Gulden, has made a statement indicating that the German Sportswear group is on the edge of losing 750 million dollars over Ye's sneakerline which has been left unsold. According to Bloomberg Business, Adidas could sell these sneakers since it’s said to have design rights after the partnership with the rapper was terminated, however it can affect their reputation in the long run.


Rapper, Kanye West, also known as Ye, in 2013 announced of his partnership with Adidas to sell sneakers under the name YEEZY. The partnership brought an increase in the sales of Adidas three years after. According to the Insider news portal, Adidas reported 18% annual sale increase after the partnership. Yeezy Sneaker empire also elevated Ye to be among the Forbes list of Billionaires with a net worth of 1.3 Billion in 2020.




The rapper and entrepreneur faced crisis in 2022 after he tweeted hate speech on Twitter and Instagram about the Black Community and Jews. His anti-sematic and racist remarks brought about public backlash which took over social media. Ye was blocked on social media for his comments whiles Adidas also released a statement describing his comment as unacceptable, hateful and dangerous which is not in line with the company’s values.


After a review from Adidas, it announced on October 25, 2022 a termination of the contract with Ye. The Adidas group also announced an immediate end of production of Yeezy branded products whiles they also ceased payment to Ye and his companies.


The Adidas group faced a drop in their shares on the stock market after they announced the termination. It has also revealed this a significant loss of revenue this year if the existing stock of Yeezy’s sneakers are not sold. The loss in operation profit could be about 535 million dollars according to Bloomberg Business.


Ye’s name has however been excluded from the list of Billionaire’s according to Forbes after he cut ties with Adidas.


Comments

More From 3Music News

3Music TV Celebrates First Anniversary

3Music TV Celebrates First Anniversary

One year down the line, the entertainment-focused, youth-oriented television station has warmed its way into the hearts of audiences, both in and outside Ghana, first with its flagship morning show, Culture Daily...

Mr. Eazi's Choplife System Renovates Jamestown Bronx Boxing Gym

Mr. Eazi's Choplife System Renovates Jamestown Bronx Boxing Gym

Mr. Eazi has added on to his philantropic works in Ghana with the renovation of the Bronx Boxing Gym in Jamestown.

3Music TV Celebrates First Anniversary

3Music TV Celebrates First Anniversary

3Music TV would like to extend heartfelt appreciation to viewers, the entertainment ecosystem, the media, clients, partners, sponsors and all who have made the first year’s journey worthwhile.

Adina Speaks On Collaborating With Stonebwoy

Adina Speaks On Collaborating With Stonebwoy

Singer Adina Thembi opens up about her experience working with Ghanaian Reggae-Dancehall Artiste Stonebwoy on the Big Conversation with the Culture Squad.

British-Ghanaian Artist GINIUS Blends Cultural Roots And Modern Influences In Mesmerizing New Release

British-Ghanaian Artist GINIUS Blends Cultural Roots And Modern Influences In Mesmerizing New Release

Not My Concern, seamlessly blends Afro Pop and Amapiano influences. GINIUS's harmonious vocals take center stage, reminiscent of her early days in her church choir. The track's catchy chorus and playful melodies, driven by log drums, deliver a message of blessings and positivity.

Tory Lanez Seeks Bail As He Awaits Appeal Following 10-Year Prison Sentence

Tory Lanez Seeks Bail As He Awaits Appeal Following 10-Year Prison Sentence

Lanez' request for bail is met with skepticism from legal experts. Michael Freedman of The Freedman Firm explained that to obtain bail pending an appeal, Lanez must demonstrate a substantial likelihood of prevailing on appeal, typically by showing errors made by the trial judge.

Nigerian Music Star Mohbad, A.K.A Imole, Passes Away at 27

Nigerian Music Star Mohbad, A.K.A Imole, Passes Away at 27

According to a source from Mohbad's team, the young singer had visited the hospital for treatment due to an infection resulting from an injury. During his hospital stay, he received an injection, after which he unexpectedly lost consciousness and did not regain consciousness.

Ko-Jo Cue Advocates for More Action and Less Talk In Ghana's Music Industry

Ko-Jo Cue Advocates for More Action and Less Talk In Ghana's Music Industry

Seasoned Ghanaian rapper, Ko-Jo Cue has called for more action and less talk in the Ghanaian Music Industry. He spoke on taking steps to put into practice the knowledge of the music business, rather than continually speaking on it with nothing to show for it.

Calabash Color Festival Successfully Holds First Edition

Calabash Color Festival Successfully Holds First Edition

Calabash Color festival has succesfully held the very first edition over the weekend at Untamed Empire.

Mimi Plange Publicises Nike X LeBron Collaboration

Mimi Plange Publicises Nike X LeBron Collaboration

Ghanaian-born American fashion designer, Mimi Plange launches the Mimi Plange x Nike LeBron 20 CEREMONY.

Rihanna Unveils Fenty X Puma Avanti Collaboration

Rihanna Unveils Fenty X Puma Avanti Collaboration

Robyn Rihanna Fenty has unveiled her newest collaboration with Puma, the Avanti.

Ghana’s AnimaxFYB Studios Unveils Official Promotional Video For Mimi Plange X Nike LeBron Ceremony Sneaker Release

Ghana’s AnimaxFYB Studios Unveils Official Promotional Video For Mimi Plange X Nike LeBron Ceremony Sneaker Release

The Mimi Plange x Nike LeBron 20 collaboration is a visual masterpiece, featuring exquisite floral embroidery covering the entire white-based upper. Vibrant infrared accents adorn the iconic Swoosh logos, tongue, and sockliner, adding a striking contrast to the design.

More Similar Videos

No similar videos to show related to this post. Explore other sections.