Adidas News: Adidas has reached an out-of-court settlement with rapper Kanye West, also known as Ye, two years after ending their high-profile Yeezy partnership. The resolution, announced on Tuesday, officially concludes all pending legal proceedings between the sportswear giant and the rapper. Notably, neither Adidas nor West will exchange any monetary payment as part of the agreement, marking a peaceful end to what had been a prolonged legal battle.
“There isn’t any more open issues, and there is no money going either way, and we both move on,” Adidas CEO Bjorn Gulden shared during a press call. He explained that both sides weighed their claims and ultimately agreed to withdraw all legal actions. “There were tensions on many issues,” Gulden noted, adding that both parties decided there was no need to continue the fight. This move signifies a stark departure from the company’s previous strong stance, when it severed ties with West in October 2022 following a series of antisemitic remarks made by the rapper.
The original collaboration between Adidas and Kanye West began in 2014, launching the highly popular Yeezy line, which soon became a defining brand in streetwear culture. However, the partnership unraveled in late 2022 after West’s controversial statements led to widespread backlash. Adidas halted the sale of Yeezy products and announced plans to gradually sell off existing Yeezy stock at wholesale prices, donating portions of the proceeds to anti-discrimination initiatives, including its newly founded anti-hate foundation.
While the settlement brings an end to the legal wrangling, the impact of Yeezy’s exit from Adidas is still felt. In its latest earnings report, Adidas revealed that it has around €1.2 billion worth of Yeezy inventory left, which the company plans to sell by the end of 2024. Demand for Yeezy products remains high, with many styles achieving significant resale value despite the controversy. Since parting ways with West, Adidas has focused on its brand image and seen growth in markets like Greater China, while North American sales excluding Yeezy products have also risen, reflecting an enhanced brand reputation.
For West, the settlement closes a difficult chapter that saw his social media accounts suspended and numerous public appearances canceled due to the inflammatory comments. Diagnosed with bipolar disorder, West has been open about his mental health struggles, which he has discussed in interviews. Although West’s public behavior has stirred widespread debate, his contributions to fashion and music remain significant.
As Adidas and Kanye West both move forward, this settlement marks the end of a tumultuous era for both the company and the artist, symbolizing a return to normalcy as Adidas repositions itself in the competitive sportswear industry. The final Yeezy inventory will be released in batches, and proceeds will continue to support anti-discrimination causes, aligning with the company’s commitment to social responsibility and inclusivity.
