Townflex brings you the latest update on the ongoing legal battle between rapper Kanye West and the athletic apparel giant, Adidas.
Despite having long-standing issues, Kanye West and Adidas managed to maintain their relationship until last year. However, things took a turn when the self-made billionaire rapper faced backlash for making anti-Semitic remarks, which led to their separation.
Latest News on Kanye West and Adidas: According to recent information reported by Bloomberg, the dispute centers around how Kanye allegedly spent or misused a significant marketing fund of around $100 million from the previous year on items that Adidas claimed were not authorized.
Reportedly, the German brand transferred $75 million into two Yeezy bank accounts.
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Insiders have revealed that the contract between the parties states that the marketing fund should not be combined with other funds, and if any misuse is discovered, Yeezy must reimburse Adidas.
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Interestingly, hints of Kanye’s use of the company’s marketing funds emerged three years ago when he appeared on Nick Cannon’s podcast in 2020.
There, the Donda hitmaker disclosed that he invested a substantial $50 million from the funds on the Sunday Service gospel choir tour, believing that the popularity of Yeezys meant he didn’t need traditional advertisements.
“The Yeezys, they were selling themselves, so instead of paying for ads, I invested it in the church,” the rapper explained.
The legal dispute has seen intense arguments between the involved parties, leading to Kanye West and Adidas officially parting ways last October. The fallout from the rapper’s anti-Semitic remarks cost the corporation a staggering $1.3 billion.
In an effort to address the issues raised by Kanye, Adidas took action in May by selling some of its unsold shoes and donating the proceeds to NGOs.
Stay tuned for further updates as this intriguing legal saga continues to unfold!
