Kanye West’s $2bn net worth doesn’t exist without Adidas. Is it finally over for him?
In recent days, a flood of companies have severed ties with Kanye West amid a whirlwind of controversy engulfing the 45-year-old rapper and fashion designer.
West stoked the backlash when he wore a White Lives Matter shirt to his Yeezy Season 9 show at Paris Fashion Week in early October.
Then on social media, West threatened to go “death con 3 on JEWISH PEOPLE,” before doubling down in a succession of antisemitic statements.
On Tuesday morning, Adidas became the latest company to join the exodus when it announced the end of its partnership with West. It marked what’s widely viewed as the largest financial blow to the rapper, who just days ago declared that the brand “can’t drop me”.
Forbes had estimated West’s net worth at $2bn with most of that wealth tied up in Yeezy, for which he earns an estimated $220m annually as part of his production deal with Adidas.
Prior to Tuesday’s announcement Forbes said that West’s net worth would fall below $1bn should the Adidas contract be torn up, but have now drastically reduced that figure to just $400m.
“Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a statement. “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.”
Amid growing calls for a complete boycott, branding and PR experts told The Independent that West has done irreparable harm to his future earning potential.
Americus Reed, a professor of marketing and branding at the University of Pennsylvania’s Wharton School, told The Independent that West’s recent outbursts were “chaotic and random, defensive and kneejerk”, and incompatible with his stated desire of building an inclusive global brand.
“The antisemitism is shocking. It’s like where is this coming from? None of it makes any sense, except through the lens of a dysfunctional person coping with problems in their life.”
Should the Adidas partnership be torn up, West’s estimated net wealth would be rendered largely meaningless, Dr Reed said before the brand’s announcement.
“The brand is valued based on its ability to grow into the future. That’s what’s at stake here. It’s absolutely foolish to say I’m worth X, Y and Z so I can do whatever I want.”
German footwear giant Adidas, which produces Yeezy, said in a statement last week that after trying to privately resolve the situation with West, it had placed the partnership “under review.”
Under intense pressure to end its partnership, Adidas did not respond to a request for comment for this story.
Juda Engelmayer, president of HeraldPR, a New York-based crisis communications firm, told The Independent it appeared West had no interest in trying to dampen down the controversy.
“With Kanye, I think he’s going to keep on doubling down because that’s his personality and he still has a massive following. He has a serious earning issue going forward, but he’s got so much money I don’t think it’s going to matter,” Mr Engelmayer, a veteran publicist who advised Harvey Weinstein, said.
“I don’t think personally he has a lot to lose other than more personal reputational harm which he doesn’t care about.”
‘Hate speech is never OK’
On 21 October, nearly two weeks after West sent out his initial offensive tweet, Balenciaga announced they had terminated their contract with the artist.
The French fashion house “no longer had any relationship nor any plans for future projects related to this artist,” its parent company Kering told WWD.
Shortly after Balenciaga’s announcement, a spokesperson for Vogue told Page Six that neither the publication nor editor-in-chief Anna Wintour intended to work with the rapper going forward.
“Anna has had enough,” the spokesperson said. “She has made it very clear inside Vogue that Kanye is no longer part of the inner circle.”
The exodus wasn’t finished there. Film and television firm MRC Entertainment announced Monday they would no longer distribute a recently completed documentary about West, who legally changed his name to Ye in 2021.
“The silence from leaders and corporations when it comes to Kanye or antisemitism in general is dismaying but not surprising,” MRC said in a pointed statement.
CAA, the Hollywood talent agency, also said on Monday they would no longer represent the rapper, according to a Los Angeles Times report.
JP Morgan Chase also cut ties with West amid the fallout. His Los Angeles stadium show was cancelled. He was blocked from Instagram and Twitter. His own lawyer dropped him.
Through it all, West has appeared unfazed. His confidence came through strong in a 16 October episode of Drinking Champs, which was later removed by YouTube.
