Adidas finds itself in a precarious position as it’s being reported they are sitting on nearly $500 million in merchandise that will presumably be difficult to sell.
After cutting ties with Ye, the artist formerly known as Kanye West, the German brand vowed to move forward with selling the merchandise that Ye holds the trademark to despite the athletic brand owning the designs which created a panic as the company faced catastrophic losses.
According to the Financial Times, Adidas insiders felt the brand was too reliant on its partnership with Ye and the revenue streams that came with it.
“Behind the scenes, things with Ye were bad already for a long time,” one former manager told the Financial Times. “He was constantly misbehaving — changing his mind, postponing projects, not respecting Adidas timelines.”
TMZ reported that sources with direct knowledge of the deal Ye signed with Adidas said there’s a clause in the contract that calls for the rapper/designer to get a reduced fee if Adidas sells his designs without his branding.
Adidas has vowed to not only stop paying Ye, but has, according to Ye, attempted to put blocks on some of his bank accounts after they severed ties back in October.
Adidas is banking on consumers being attached to the products and still willing to purchase them, most likely at a reduced price, but would you be willing to buy the shoes without the Yeezy name?