Adidas is set to gain a €100 million (about R1.8 billion) boost following the settlement with Kanye West, now known as Ye, after a series of lawsuits stemming from their partnership’s abrupt end.
The conflict arose after controversial comments made by West led Adidas to terminate their collaboration under the Yeezy brand. During a press call, Adidas CEO Bjørn Gulden announced that both parties agreed to drop all claims, stating no payments were owed between them.
This settlement allows Adidas to unwind previous legal provisions, enhancing its operating profit. Last year, the loss of the Yeezy line significantly impacted Adidas, causing a €400 million (R7.2 billion) drop in sales. Despite this resolution, West faces ongoing legal challenges related to other allegations.