In an article first released by TMZ it was reported that Kanye West closed a deal with ADIDAS that have billion dollar potential!
So here’s the Skim!
- The new “adidas + KANYE WEST” line is the biggest partnership Adidas has ever launched with a non-athlete.
- Deal worth was not included but TMZ reports potential billion dollar valuation.
- Yeezy products will include a line for both men and women.
- The line goes beyond fashion wear into athletic gear.
- Deezy will also have his own line of retail stores.
What does this mean for Nike?
- Nike missed the mark (pun intended) on Steph Curry over a bible verse he wanted to be written on his trademark shoe. Now they’ve also missed the mark on Kanye.
- Kanye West originally left Nike for a $10 million deal with Adidas after severing his creative partnership with Nike.
- In an interview with Hot 97 he explained that Nike had failed to offer him decent royalties on his Air Deezy shoe.
- He also claims Nike delayed the release of his new Red Octobers in order to convince stores to order additional less-desirable stock.
- Case in point: he felt marginalized.
What does this mean for adidas?
- ADIDAS is destroying the athletic wear competition this year on Wall Street.
- Shares of the German athletic apparel giant are up more than 30% this year. Nike (NKE) and Under Armour (UA) are both down more than 5%.
Final thoughts… With 2 signature athletes winning the championship in Cleveland (Lebron James and Kyrie Irving) Nike thought they were on pace for a great summer. This news changes everything.