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How Kanye West Could Make $100 Million When Adidas Gets Rid Of Its Yeezy Merch

The business partnership between Adidas and Kanye West has come to an end, but the rapper will benefit from the sale of the unsold Yeezy products.
UPDATED MAY 17, 2023
Cover Image Source: GettyImages/Jonathan Leibson
Cover Image Source: GettyImages/Jonathan Leibson

The business partnership between Adidas and Kanye West is finally coming to an end following the rapper's anti-Semitic remarks last year. The termination of the partnership left approximately $1.4 billion worth of unsold Yeezy products with the brand. After months of internal debate, Adidas has finally decided to sell off its vault full of excess unsold Yeezy products.

According to Celebrity Net Worth, the company expects its loss on the merch to drop from $1.4 billion to about $700 million. A part of the proceeds will go to charity.

Image source: GettyImages/Jonathan Leibson
Image source: GettyImages/Jonathan Leibson

Kanye West to Benefit from the Sale

Thanks to a previously-mounted 15% fee structure, if Adidas sells the merch for $700 million value, Kanye might earn around $100 million. The information comes as Adidas is facing its worst economic figures (and its first published annual loss) in 30 years, broadly credited to the loss from Yeezy products.

West is probably too radioactive for the style world, however, the marketplace for the Yeezy footwear he designed continues to be responsive.

Image Source: GettyImages/Scott Olson
Image Source: GettyImages/Scott Olson

Bjorn Gulden, Adidas CEO, stated that the secondary resell market is why the company decided to hold on to its estimated $1.4 billion Yeezy inventory instead of selling or donating it. But now it seeking out to sell. "What we try to do now through the years is to promote a number of this merchandise… burning the products might now no longer be a solution."

The Creative Mind of Kanye West

As difficult as he was, Kanye West is perhaps the most creative mind in the fashion industry, Gulden said . The rapper has been widely recognized for his contributions to the fashion industry. His Yeezy line with Adidas has become a multi-billion-dollar brand. In 2015, he won the Footwear News' "Shoe of the Year" award for his collaboration with Adidas. In 2018, he launched his fashion brand, Yeezy, and it has been widely successful.

Image Source: GettyImages/Paras Griffin
Image Source: GettyImages/Paras Griffin

Despite his success, Kanye has been a controversial figure often causing controversy with his outspoken views. In 2016, he famously declared that he was running for US president. His endorsement of former President Donald Trump also led to backlash.

The Future of Yeezy

Adidas and Kanye West's business partnership has come to an end, leaving the future of Yeezy in limbo. Although Adidas has stopped selling Yeezy products, it remains unclear whether the brand will find a new partner or if Kanye West will create a new brand altogether.