After several days of criticism, Adidas finally cut ties with Ye, the artist formerly known as Kanye West. The move comes after West, the musician/fashion designer, made a series of antisemitic remarks. While there were calls for Adidas to part ways with Ye, including strong statements from the Anti-Defamation League, Adidas was slow to act, drawing widespread criticism.
Whether it was because Adidas finally realized that Ye had crossed the line, or grew tired of the horrible public relations backlash or hated watching its stock prices tumble (or perhaps all of the above), Adidas finally severed its relationship with Ye.
In a statement, Adidas said, “Adidas does not tolerate antisemitism and any other sort of hate speech. Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
The announcement will have a financial impact on both Adidas and Ye. Adidas announced the short-term impact would result in a loss of about $246 million for the company. Meanwhile, it is being reported that Ye will lose his status as a billionaire. Forbes reports that without the Adidas deal, Ye’s net worth has dropped to $400 million.
CNN’s Nathaniel Meyersohn points out, “… there are major costs if a celebrity who is closely linked to a brand becomes engulfed in a scandal or controversy.”
Meyersohn notes examples such as Subway and Jared Fogle, Jell-O and Bill Cosby, and Nike and Lance Armstrong.
Even though Adidas has cut ties with Ye, did it wait too long? Has it damaged its reputation and brand by not making a move sooner?
Stefan Hock, an assistant professor of marketing at the University of Connecticut, told CNN, “The best thing to do if you have an endorser who misbehaves is to cut ties quickly. If you drag your feet it creates a downward spiral.”
Yahoo Finance’s Brian Sozzi wrote, “Adidas is a mess of a retail brand right now, and it's not only because of ties to problematic musician-turned-designer Kanye West.”
Sozzi reports that Adidas’ stock is down 64% so far in 2022, and continued to fall with this latest controversy. Sozzi wrote, “Besides the West drama, Adidas is entering wounded into the holiday season — the latest retailer to get flat-foot operationally as global economies have slowed. That poor execution has primarily led to a glut of Adidas inventory that will have to be aggressively marked down at the expense of profits, the company warned a week ago.”
Ye has reportedly threatened to take his Yeezy brand and open his own retail stores.
“But,” The New York Times’ Vanessa Friedman, Michael J. de la Merced and Melissa Eddy reported, “the future of the Yeezy brand is unclear. Ye still owns the Yeezy trademark. However, Adidas said in its statement that it was the ‘sole owner’ of all design rights to existing products that came out of the partnership, as well as previous and new colorways arising from the collaboration. What the sneakerheads who made the last release of Adidas Yeezy shoes, on Oct. 17, a sell-out product, will do next is now the question.”
Corden’s apology
CBS talk-show host James Corden was off last week from his late-night show, but he was still in the news. A New York restaurateur took to Instagram to announce he was banning Corden after Corden treated restaurant staffers rudely. Corden and the restaurateur hashed things out and Corden’s ban was lifted. But his reputation took a hit and other stories circulated online about him being a bit of a louse sometimes.
Corden was back on his “Late Late Show” Monday night and apologized for his behavior at the New York restaurant. Corden explained that he had to have his wife’s meal sent back several times because it contained food she was allergic to. He said he used to work in restaurants himself and that he has nothing but respect for people in the service industry.
He then said, “But here is the truth of it, right, because I didn’t — because I didn’t shout or scream, like I didn’t get up out of my seat. I didn’t call anyone names or use derogatory language. I have been walking around thinking that I hadn’t done anything wrong, right? But the truth is like I have — I made a rude comment and it was wrong, and it was an unnecessary comment. It was ungracious to the server.”
He then added, “I understand everybody getting upset and I accept — I accept everybody’s opinion. I also hate, as I said to the owner that day, that I’ve ever upset anybody ever — it was never my intention. It just wasn’t. And I love that restaurant. I love the staff there. I hope I’m allowed in again one day, so when I’m back in New York I can go there, and apologize in person, which is something I will absolutely do.”
As apologies go, it was a good one.
A final Final Four
