Adidas told reporters in a conference call that it has the rights to the designs and that it intends to sell current inventory of items created for the Yeezy collection without using the brand. Adidas will keep selling Ye’s sneaker designs even without the Yeezy brand.
According to Ohlmeyer, the business is the sole owner of all Yeezy shoe design rights for current and upcoming hues and iterations, and it plans to use these rights as early as next year.
Adidas reported on Wednesday that the breakup of the alliance would cost it more than $250 million in earnings and $500 million in lost sales in 2022.
Per the Wall Street Journal, CFO Harm Ohlmeyer stated, “Let me be clear, we own all the IP, we own all the designs, we own all the versions and new colours.” “It’s a thing we make. The Yeezy name is not ours.” According to Bloomberg, Ohlmeyer reportedly told reporters that Adidas is considering its possibilities for releasing the footwear in 2023.
“As publicly communicated on October 25, we had terminated the partnership with Ye immediately, ended production of Yeezy branded products and stopped all payments to Ye and his companies,” Adidas finance chief Harm Ohlmeyer said on the November 9th earnings call. Adidas stated that by selling the sneakers with its own logo, it will save paying over $300 million in royalties and marketing costs. The CFO declared that, Going forward, “we will use the existing inventory with the precise plans being developed as we speak.”
Ohlmeyer further informed the media that the Yeezy business’ profitability had been exaggerated due to the fact that its costs only covered costs directly associated with the products and not with the company’s main overhead expenses. He said that by not having to pay royalties to Ye, the corporation would save “around 300 million euros linked to royalties. “The majority of the top and bottom-line impact in 2023 will be mostly offset by this, he claimed, according to The Associated Press.
Due to the musician formerly known as Kanye West’s anti-Semitic remarks in interviews and on social media, the German shoe and sportswear firm terminated its relationship with him. in addition to Balenciaga Ye’s relationships with other companies, including the Gap, the talent agency CAA, and both Twitter and Instagram were terminated. Gap said last month that it was formally terminating its relationship with Yeezy by withdrawing all remaining Yeezy Gap merchandise from its stores and shutting down YeezyGap.com in the midst of the distribution dispute that led to the termination of the two companies’ contracts in September. The rapper-turned-fashion-designer came under public scrutiny for his antisemitic remarks last month after tweeting “death con 3 on JEWISH PEOPLE,” which appeared to be a reference to the DEFCON scale used to measure the readiness of the American military.
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