What Was Adidas Thinking?

Adidas cut ties with Ye recently, after the latter publicized his antisemitic views. In doing so, it gave up the revenue stream from his Yeezy sneakers.

Okay. I get that. Being connected to Ye now is a major socio-political risk for Adidas. Better step away from him than try to defend him.

But until just this morning, I didn’t realize what Adidas will be giving up. According to Business Insider, Yeezys, which retail for $200+, were the hottest brand in the world when Ye made his controversial statements. They were producing more than $1 billion annually.

Two things that are interesting about this story:

* Yeezys were hugely ahead of every other Adidas brand. For example, Beyoncé’s Ivy Park clothing line, which was projected to be several hundred million when it was introduced in 2021, failed to reach $100 million three years in a row.

* Cutting this revenue stream opens Adidas up to a shareholder lawsuit. As a public company, its number one fiduciary responsibilities are to the share price and the bottom line. Firing Ye could be a disaster. We’ll soon find out.