A tough year for Adidas got even more complicated on Tuesday when it cut ties with Kanye West. Here's what's going on
Jonathan Leibson—Getty Images for Adidastough year for Adidas got even more complicated on Tuesday when it cut ties with Kanye West—one of the brand’s most profitable partners—after he made a series of antisemitic remarks on social media and embraced a slogan associated with white supremacists. The decision will cost the company at least $250 million this year, though experts in managing corporate crises tell TIME it was the right thing to do.
“When your own employees are calling for you to take action on social media, you probably already let the issue go too far,” says Erik Bernstein, president of Bernstein Crisis Management.on Tuesday that its decision to terminate its partnership with Yeezy will have a short-term negative impact of up to €250 million on its net income this year. According to Morningstar analyst David Swartz, Yeezy generated an estimated $2 billion a year, close to 10% of the company’s annual revenue.
“The thing about it being Adidas—I can say antisemitic things and Adidas can’t drop me. Now what? Now what?” Ye said on a podcast. According to Bernstein, that comment was the “nail in the coffin.” Ye’s comments also highlight a rise in antisemitic sentiments in the U.S. In 2021, the Anti-Defamation Leaguethat there were more than 2,700 antisemitic incidents, a 34% increase from the year before.