New York CNN Business –
Adidas had ended its partnership with Ye, aka Kanye West, with “immediate effect”.
In a statement on Tuesday, the sportswear maker said it “does not tolerate anti-Semitism or any other form of hate speech” and said his recent comments were “unacceptable, hateful and dangerous”. Adidas said they violated the company’s “values of diversity and inclusion, mutual respect and fairness.”
Sales and production of his Yeezy-branded products have been halted, as have payments to Ye and his companies. Adidas said it will take a 250 million euro ($246 million) hit to its fourth-quarter sales.
Adidas has partnered with West since 2013, when the company signed its brand away from rival Nike. In 2016, Adidas expanded its relationship with the rapper, calling it “the most significant partnership ever between a non-athlete and an athletic brand.”
But Adidas put “the partnership under review” in early October after he wore a “White Lives Matter” T-shirt in public. The Anti-Defamation League classifies the phrase as a “hate slogan” used by white supremacist groups, including the Ku Klux Klan.
Ye recently said “I can say anti-Semitic shit and Adidas can’t put me down,” during an anti-Jewish rant on the Drink Champs podcast. He also threatened on Twitter to “Go death con 3 on JEWISH PEOPLE.”
Anti-Defamation League CEO Jonathan Greenblatt said Adidas’ decision is a “very positive outcome.”
“It illustrates that anti-Semitism is unacceptable and generates consequences. Adidas has certainly done the right thing by cutting ties with Ye following his anti-Semitic rants,” he said in a statement. “Ultimately, Adidas’ action sends a powerful message that anti-Semitism and bigotry have not place in society”.
Adidas shares fell about 5% in Frankfurt. Adidas said it will release additional information on the financial implications of the dissolution of its partnership with Ye in its next earnings report on November 9.
The list of brands moving away from the West is growing. Balenciaga and Vogue publicly cut ties last week, and on Monday, talent agency CAA dropped West as a client. Production company MRC said it is saving a documentary about West.
Last month, the rapper said he was ending his rocky two-year relationship with The Gap, citing “substantial breach.” Ye said he had “no choice but to end his partnership,” alleging that the company failed to open Yeezy-branded stores and distribute his merchandise as planned, the his lawyer in a statement.
“Ye’s saga, not just with Adidas but with brands like Gap and Balenciaga, underscores the importance of thoroughly researching celebrities and avoiding those who are too controversial or unstable,” GlobalData CEO Neil Saunders wrote in a note Tuesday.
“While there is room for some tension in fashion, this should never cross the line of decency and basic respect for humanity. Companies or brands that ignore this will suffer, especially if they rely too much on a difficult personality to drive their business,” he added.
– CNN Business’ Jon Sarlin contributed to this report.