It seems like Kanye is really going through it right now.
First, he was dropped from GAP and other brands after comments he made, and then he made comments that were deemed antisemitic, and he thought he wouldn’t lose Adidas because his brand makes so much money. He was wrong.
The brand recently cut ties with Kanye, and things seem to be getting worse because Aaron Donald and Jaylen Brown have also cut ties with Kanye’s Donda Sports.
To add fire to the fuel, according to reports by Bloomberg, Adidas could still sell the Yeezy designs with the name Yeezy. because they have declared themselves the sole owner of said designs.
According to reports, Adidas has declared itself the “sole owner” of Yeezy designs from existing products as well as previous and new colorways under the partnership. While the company is anticipating a massive short-term loss as a result of the partnership being terminated, the decision to continue selling the designs and colorways will certainly test whether people flocked to Adidas for the Yeezy branding or for the love of the designs and colorways.
Adidas AG intends to sell existing Yeezy product designs using its own branding after ending its partnership with rapper and designer Ye, formerly Kanye West.
Adidas management has indicated that it will start selling the products under the company’s brand at the beginning of next year, according to analysts at Morgan Stanley and RBC Capital Markets. That follows the dissolution of the lucrative tie-up, which Adidas has described as one of the industry’s most successful ever, after Ye made antisemitic comments.
“Looking ahead, on our understanding, the company will not sell any Yeezy-branded products and all Yeezy products will be branded under Adidas brand,” Morgan Stanley analyst Edouard Aubin said in a note to clients Tuesday.
“Adidas has the rights to existing Yeezy product designs and can sell these using Adidas branding (not Yeezy branding) following the termination of the Yeezy partnership, which Adidas intends to do” in the first quarter of next year, RBC analyst Piral Dadhania said in a note. “Speaking to the company, it believes it can limit the loss of revenues through this strategy, and will also save on expenses related to royalty and marketing fees no longer payable in 2023.”
It will be very interesting to see how this plays out for Kanye and Adidas.
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