Kanye West and Adidas have discreetly resolved their long-standing legal disputes, two years after Adidas terminated its partnership with the rapper. The separation stemmed from controversies surrounding West’s inflammatory actions, including wearing a “White Lives Matter” T-shirt and making antisemitic remarks in 2022, which clashed sharply with Adidas’s values of inclusivity and respect. On Tuesday, Adidas CEO Bjørn Gulden announced that both parties have withdrawn their claims through an out-of-court settlement. “There isn’t any more open issues, and there is no money going either way, and we both move on,” Gulden confirmed, describing the mutual decision to end their legal struggle without financial exchange.
Gulden acknowledged that both sides initially had many grievances.
“There were tensions on many issues, and… when you put the claims on the right side and you put the claims on the left side, both parties said we don’t need to fight anymore and withdrew all the claims.”
He refrained from sharing additional specifics, emphasizing that “No one owes anybody anything anymore. So whatever was is history.” This conclusive statement leaves little room for speculation about ongoing disputes, signaling a clear end to their contentious partnership.
Adidas and West had a significant business relationship before their fallout, with West’s Yeezy line contributing nearly 50% of Adidas’s profits. After Adidas dropped him, the company was left with approximately $1.3 billion in unsold Yeezy merchandise, an issue they have since been addressing through sales of remaining inventory. To distance itself from West’s controversial statements, Adidas pledged that any profits from these sales would be donated to organizations impacted by West’s rhetoric. The athletic company also reinforced its stance against hate speech, stating, “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.”
For West, the termination of the Adidas deal had major financial repercussions, stripping him of his billionaire status as the partnership had been valued at around $1.5 billion of his net worth. In February 2024, West alleged that Adidas was suing him for upwards of $250 million, but this claim now seems to have been settled as part of the recent agreement.
The friction between Adidas and West, however, did not begin with their 2022 fallout. Reports suggest a history of discord dating back to their initial collaboration. In October 2023, The New York Times detailed accusations of inappropriate behavior by West at Adidas meetings, starting as early as his first meeting with the German retailer in 2013. Allegedly, West once drew a swastika on a shoe sketch to convey his frustration with the design team’s ideas. Former employees have reported West’s provocative and offensive actions, including praising Adolf Hitler as a “master marketer” and expressing admiration for his “command of propaganda.” One report even claims West advised a Jewish Adidas manager to “kiss a picture of Hitler every day,” further highlighting the extent of his alleged problematic conduct.
Despite these allegations, Adidas reportedly allowed West’s behavior to go unchecked for nearly a decade. It was only after the controversies of 2022 that the company finally invoked the morals clause in West’s contract to end the partnership, underscoring the extent of his perceived breach of company values.
While the recent settlement effectively closes the chapter on their legal conflicts, it also brings to light the impact of prolonged, unchecked conduct on corporate relationships. Adidas’s decision to sever ties was costly, leaving it with a substantial inventory surplus and potential reputational challenges. However, the company’s choice to donate profits from remaining Yeezy stock reflects a commitment to repair its reputation and make a positive impact.
Meanwhile, West’s reputation has taken considerable hits, with the fallout impacting his public standing and financial status. Despite the settlement, his conduct over the years has left a significant imprint on his legacy. The end of the Adidas legal battle signals a move forward, but the underlying issues surrounding their partnership serve as a reminder of the broader implications of unchecked behavior within high-stakes business relationships.
As both parties continue independently, the settlement stands as a milestone in the corporate world, showing the complexities of partnerships involving high-profile personalities. The resolution allows Adidas and West to move on, but the history of their collaboration remains an example of the potential pitfalls when brand values and personal behavior collide.
