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Adidas and Ye’s Battle Over a $100 Million Marketing Fund

Adidas and Ye’s Battle Over a $100 Million Marketing Fund

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Kanye West, known as Ye, in Los Angeles, March 11, 2022. (AP Photo/Ashley Landis, File)

The drama between Kanye West, who is changed his name to Ye, and Adidas continues.

Back in October 2022, Adidas ended its highly profitable and long-term partnership with Ye to sell his Yeezy products over remarks he made that were deemed antisemetic.

Then in May 2023, after losing a whopping $540 million, Adidas said it would sell its $1.3 billion worth of stock of Yeezy items after all, with the stipulation it would donate a portion of the profits to charity.

Now comes the news that Adidas has been in a high-hush battle with the West over money the company had allotted for marketing the Yeezy brand. According to the German shoe giant, Ye mishandled most of the annual fund of $100 million. Adidas also claims the hip-hop mogul diverted $75 million of that money.

The secret dispute is being conducted through an arbitrator. Bloomberg reported that the media caught wind of the fight when details were accidentally revealed in a related hearing in May when the parties’ lawyers discussed them in open court.

In one legal filing, the company reportedly alleges that Ye and his fashion brand Yeezy LLC “mishandled virtually all of the marketing funds” — including using them for unauthorized purposes.

According to Adidas, it paid $50 million last year into a Yeezy bank account in Wyoming, where West used to live, and $25 million into Yeezy’s JPMorgan Chase account in New York. All of the money, said the company, was to be put in a unique pot for marketing. But Adidas said the money was immediately transferred into a separate, general account commingled with other Yeezy funds. This violated their agreement, said the company.

West has denied the allegations and, in court documents, claimed that Adidas was trying to stifle his creativity and take control of his designs.

In a heavily redacted version of Ye’s arbitration counterclaims, he alleged that Adidas imitated his designs to create their own more affordable footwear. Adidas, however, maintains that they possess ownership of all Yeezy shoe designs, Fortune reported.

Kanye West, known as Ye, watches the first half of an NBA basketball game between the Washington Wizards and the Los Angeles Lakers in Los Angeles, March 11, 2022. (AP Photo/Ashley Landis, File)