Kanye West’s partnership with Adidas wasn’t just another collaboration—it shook up the sneaker game, redefining how brands could link up with cultural icons. What started as a bold move in 2013 turned Adidas into a key player in streetwear, only to come crashing down in 2022 after Kanye’s highly controversial statements.
The Beginning: Kanye’s Pitch That Changed the Game
Back in 2013, Kanye hit up Adidas with a wild idea: “Nike treats its celebrity partners like mascots. I want to build an empire.” Most people thought Ye was trippin’, but Adidas saw an opening—a chance to step out of Nike’s shadow and become more than just an athletic brand.
Nike’s formula was simple:
- Athletes = Performance
- Celebs = Hype
But Kanye wasn’t about following formulas. He wanted total control—his own design team and royalties on every sale. When Nike passed, Adidas said yes, cutting a deal that gave Kanye 15% royalties—triple what Michael Jordan was getting from Nike. In return, Kanye promised to make Adidas cool again, something they hadn’t been since the ‘80s Run-DMC era.
Sneakerheads were skeptical at first. But when the first Yeezy drop hit, it flipped the game:
- 9,000 pairs sold out in 10 minutes
- Resale prices hit $3,000
- Adidas’ stock jumped 7%
By 2021, Yeezy was more than just a brand—it was a movement. Websites crashed during every drop, resale prices hit ridiculous highs, and even Kanye’s weirder designs became must-haves.
Then came October 2022. Kanye’s anti-Semitic comments on InfoWars sent shockwaves through the industry. Brands like Balenciaga and Gap cut ties within hours, but Adidas stayed silent. The reason? Yeezy wasn’t just another sneaker—it made up half of Adidas’ online sales and was responsible for a 300% rise in their stock since 2015.
Cutting ties meant risking their financial future. While the internet trended #BoycottAdidas and protests hit the streets, Adidas tried to figure out a way forward. After two weeks of silence, they finally pulled the plug on October 25, knowing it would cost them big—resulting in their first annual loss in over three decades.
With $1.3 billion worth of unsold Yeezys sitting in warehouses, Adidas came up with a plan: sell the remaining pairs and donate part of the proceeds to anti-hate groups. The move brought in $750 million by the end of 2023.
Meanwhile, Kanye wasn’t waiting around. He pulled a DIY comeback, dropping low-budget ads filmed in his car and releasing $20 YZY PODS—a sock-shoe hybrid. Even without major brand backing, he sold 260,000 pairs, and his website couldn’t keep up with demand.
Kanye’s Yeezy saga is a lesson in the power—and danger—of personal brands. He helped Adidas gain cultural clout and huge profits, but when things went left, it nearly brought down a $60 billion company.
They gave him 3x more royalties than Michael Jordan.
— 𝐃𝐑⁴¹(𝐅𝐚𝐧) (@Rice_Prop) January 11, 2025
His shoes resold for $3,000. Their stock rose 150%. They became relevant again.
Until it cost them $1.3 billion in a single day.
This is the story of how Kanye West brought a $60 billion company to its knees:
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