According to Forbes, Kanye West’s bizarre anti-Semitic outbursts have resulted in Adidas terminating a lucrative deal with Adidas to produce Yeezy shoes.
Forbes reported on Tuesday that his relationship with Adidas was responsible for $1.5 billion of West’s estimated $2 billion fortune. That substantial portion of his net worth, now estimated at $400 million, is effectively erased by the deal’s failure. Forbes says that a multiple of the partnership’s annual earnings is the basis for the deal’s estimated $1.5 billion value.
According to the publication, his remaining net worth is based on his music catalog, real estate holdings, liquid cash, and his 5% stake in Skims, the burgeoning shapewear brand started by his ex-wife Kim Kardashian. According to Joe Favorito, a professor of sports management at Columbia University, “it has to have an impact on your bottom line when you part ways with a massive company that is your distribution partner.”
Ye is Kanye West‘s new name, which he changed last year. For years, he has made it clear that the media has underestimated the size of his business empire. An erratic West stated earlier this month that “the Jewish underground media mafia” was “attacking” him, in part by misrepresenting his wealth, during a contentious interview with Chris Cuomo of NewsNation.
Kanye West complained, “They never call me a billionaire.” Hey, billionaire, tycoon, inventor, and visionary—these are never used.
Forbes stated in its report that Kanye West would complain about the publication’s valuations “every year.” In recent years, estimates of the West’s wealth varied widely. Bloomberg claimed in 2021 that he was worth as much as $6.6 billion, despite Forbes‘ estimate of $2 billion. The Post obtained financial records last year that suggested that West’s Adidas segment as a whole could be worth as much as $3.7 billion.
Due to the close proximity of the crucial holiday quarter, Adidas acknowledged that the decision to cut ties with West would have a “short-term negative impact” on its net income of approximately $250 million in 2022.
Jonathan Komp, an analyst at Baird, estimated in a note to clients that the Yeezy partnership brought in approximately $1.8 billion annually and had a “high-30% operating margin” for the business.
In recent days, Adidas was put under a lot of pressure to cancel its deal with Kanye West. The Anti-Defamation League and a number of well-known people demanded that the company take a stand. “After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products, and stop all payments to Ye and his companies,” Adidas said. “Adidas will stop the Adidas Yeezy business with immediate effect.”