The Yeezy collaboration between Kanye West and Adidas achieved great success, but it came at a cost, as the company overlooked his misconduct for almost ten years.
A year ago, Adidas ended its lucrative shoe deal with Kanye West, which seemed to be triggered by his inflammatory remarks about Jews and Black Lives Matter. However, an investigation by The New York Times reveals that the partnership had problems from the very beginning.
Ye, formerly known as Kanye West, subjected Adidas employees to offensive comments, including anti-Semitic remarks and crude sexual comments, as well as routine verbal abuse. Despite the partnership’s financial success and Mr. West becoming a billionaire, Adidas executives struggled to handle his demands and provocations.
Through interviews with current and former Adidas employees, as well as individuals associated with Mr. West, and by examining previously undisclosed internal records like contracts, text messages, and financial documents, we present seven key findings about this tumultuous relationship.
For nearly a decade, Adidas overlooked Mr. West’s misbehavior as profits continued to rise. Mr. West’s initial contract with Adidas in 2013 featured the most generous terms ever offered to a non-athlete. In the subsequent contract three years later, Mr. West received more compensation, and Adidas included a morals clause that allowed them to terminate the partnership if he engaged in conduct leading to “disrepute, contempt, scandal,” as per a document obtained by The Times.
While the collaboration generated billions of dollars, Mr. West’s conduct became increasingly erratic. However, it remains unclear if Adidas ever contemplated using the morals clause before ending the partnership last year.
Both Adidas and Mr. West declined interview requests and refrained from commenting on The Times’ discoveries.
During the partnership, Mr. West displayed concerning fixations with Jews and Hitler. Shortly after joining forces with Adidas, he met with designers at the company’s headquarters in Germany to discuss concepts. He was so offended by their designs that he drew a swastika on one, shocking the employees.
He later instructed a Jewish Adidas manager to kiss a portrait of Hitler daily and disclosed that he had settled for a substantial sum with one of his own employees who accused him of repeatedly praising Hitler.
Mr. West shared with Adidas colleagues that he admired Hitler’s use of propaganda and held a belief that Jews possessed unique abilities enabling them to accumulate wealth and influence.
He introduced explicit content and inappropriate comments into the workplace. In 2013, just before the swastika incident, Mr. West showed pornography to Adidas executives during a meeting at his Manhattan apartment. He continued to display explicit content to Adidas employees at work. Last year, he surprised Adidas executives in Los Angeles with a pornographic film.
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Substantial requests and shifts in mood strained the relationship.
Mr. West frequently argued that Adidas was taking advantage of him, seeking greater financial compensation and more authority, at times proposing that he should assume the role of chief executive.
These complaints were frequently delivered during his intense mood swings, causing confusion and unpredictability among the employees. Despite being diagnosed with bipolar disorder, he sometimes rejected the diagnosis and resisted treatment. Emotional outbursts, including tears and anger, were not uncommon.
In 2019, he suddenly relocated his Yeezy operation to a remote location in Cody, Wyoming, instructing the Adidas team to follow him there. He referred to those who would join him as “believers” and likened the move to a “pilgrimage,” as recounted by an Adidas executive in a group text among colleagues. During a meeting with Adidas leaders that year to discuss his demands, he threw shoes around the room.
Adidas had to adapt to Mr. West’s behavior: “We are facing a critical situation.” Managers and senior executives initiated a group text chain called the “Yzy hotline” to address concerns related to Mr. West.
The Adidas team responsible for Yeezys adopted a strategy they likened to firefighting, rotating team members to handle interactions with the artist. “We are facing a critical situation,” the team’s general manager texted colleagues in 2019. “The front line is completely exhausted and feels unsupported.”
The company assigned a human resources representative to the unit and provided new hires with access to a meditation app. The staff regularly convened for sessions resembling group therapy.
As the brand increasingly relied on Yeezys, it improved the terms for Mr. West. In the 2016 contract, he was granted a 15 percent royalty on net sales, including an initial payment of $15 million, in addition to substantial annual company stock grants.
The primary concern, as noted in an Adidas document during contract negotiations, was ensuring that Kanye received a significant financial reward to demonstrate his value. This collaboration elevated him to Forbes’s list of the world’s wealthiest individuals.
Furthermore, in 2019, Adidas agreed to an additional incentive: an annual sum of $100 million, officially designated for Yeezy marketing, but effectively serving as a fund for Mr. West’s discretionary spending.
He still has the potential to earn money from the Adidas agreement. After the partnership deteriorated a year ago and Yeezy sales declined, both Adidas and Mr. West experienced significant setbacks. The company anticipated its first annual financial loss in decades, and Mr. West’s net worth suffered a considerable decline.
Nonetheless, they had an opportunity to continue generating revenue together. In May, the company commenced the release of the remaining $1.3 billion worth of Yeezys, with a portion of the proceeds designated for charitable purposes. However, the majority of the revenue would benefit Adidas, and Mr. West was entitled to royalties.
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