After two years of litigation and arbitration, Adidas and Ye, the rapper previously known as Kanye West, have reached an out-of-court resolution of their contractual dispute stemming from Adidas terminating its relationship following antisemitic remarks from the entertainer.
The resolution was reported by Reuters Thursday. The parties have been engaged in multiple legal disputes. Last year in a federal court litigation, Adidas sought to freeze $75 million held by Yeezy, a media and fashion brand run by Ye. The parties agreed to resolve the matter through arbitration, and thus out of the media’s reach—an important feature for a publicly traded company like Adidas.
As detailed by the Anti-Defamation League, Ye, 47, made multiple remarks that were harshly criticized for denigrating Jewish people. In 2022, the rapper and record producer told Chris Cuomo of NewsNation that “every celebrity has Jewish people in their contract” and that there was a “Jewish underground media mafia.” In another interview with Tucker Carlson (at the time with Fox), Ye suggested that the Ku Klux Klan and American birth control activist Margaret Sanger had created Planned Parenthood with the goal of controlling the Jewish population. He also insisted he could not be antisemitic because, as a Black person, he is Jewish.
According to court documents, Adidas terminated its contract with Yeezy in the fall of 2022. The company explained its decision was based on Ye’s comments being “unacceptable, hateful and dangerous” and the company’s zero tolerance of hate speech. Adidas also faced a federal lawsuit brought by investors, who claimed they were misled by the company’s relationship with Ye in violation of securities laws. That case was dismissed earlier this year.
Reuters’ report cites remarks made Tuesday by Adidas CEO Bjorn Gulden on a conference call with reporters. Gulden said the parties have resolved their dispute and neither side is paying the other. “We both move on,” he added.
