Kanye West is no longer a billionaire now that his partnership with Adidas has come to an abrupt end.
The rapper was estimated to be worth $2 billion, with $1.5 billion of his worth attributed to his deal with Adidas. Now that Kanye lost the deal, his net worth is estimated to be $400 million.
via NYP:
The estimated $1.5 billion value of West’s Adidas deal is based on a multiple of the partnership’s annual earnings, according to Forbes. The publication noted his remaining net worth is tied to his music catalog, real estate holdings, liquid cash and his 5% stake in Skims, his ex-wife Kim Kardashian’s burgeoning shapewear brand.
“When you part ways with a massive company that is your distribution partner it has to have an impact on your bottom line,” Columbia University sports management professor Joe Favorito told The Post.
West, who changed his name to Ye last year, has publicly accused the media for years of underestimating the size of his business empire. During a controversial interview with NewsNation’s Chris Cuomo earlier this month, an erratic West said “the Jewish underground media mafia” was “attacking” him – in part by misrepresenting his wealth.
“They never call me a billionaire,” West grumbled. “Hey, tycoon, billionaire, visionary, inventor — these are never used.”
In its report, Forbes said that West would contact the publication “every year” to complain about its valuations.
Estimates about West’s wealth varied widely in recent years. While Forbes placed the number at $2 billion, Bloomberg asserted in 2021 that he was worth as much as $6.6 billion.
Last year, The Post obtained financial documents suggesting the overall value of West’s Adidas segment alone could be as high as $3.7 billion.
Adidas acknowledged that its decision to sever ties with West would have a “short-term negative impact” of approximately $250 million to its net income in 2022, due to its proximity to the critical holiday quarter.
In a note to clients, Baird analyst Jonathan Komp estimated the Yeezy partnership generated about $1.8 billion in annual revenue and “high-30% operating margin” for the company.
Adidas faced immense pressure to nix its deal with West in recent days, with the Anti-Defamation League and several prominent individuals calling for the company to 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 in a statement on its decision. “Adidas will stop the Adidas Yeezy business with immediate effect.”
The irony of his comments about Jewish people is that his partner developing the Yeezy brand and the former chief operating officer of Yeezy is an Israeli sneaker-head, Udi Avshalom.
In an August interview with Israel 21c, Avshalom said he wanted to bring Ye to Israel to help Avshalom introduce a sneaker culture to the country. “Eventually [Kanye] is going to make world peace through sneakers.”
It’s not clear how Avshalom feels about West’s recent comments, but industry watchers say, “if Udi bails on Kanye then you know that Kanye really believes this stuff about Jewish People,” Juda Engelmayer, a crisis public relations executive told The Post.
The company’s announcement was the latest twist in a bizarre saga for West, who has espoused anti-Semitic views on several occasions. The rapper had also insisted that Adidas couldn’t end the deal.
“I’m a bit sleepy tonight but when I wake up I’m going death con 3 On JEWISH PEOPLE,” West wrote in an Oct. 9 tweet.In September, West had publicly expressed dissatisfaction over his deals with Adidas and retailer Gap.
“They my new baby mamas,” West told Bloomberg News. “I guess we’re just going to have to co-parent those 350s.”
$400 million might sound like a lot, but most of that figure is pure valuation. At the rate Kanye spends, if he’s not careful he’ll be ‘broke’ in no time.
