This podcast episode delves into the partnership between Adidas and Kanye West, examining the challenges, controversies, and financial success that emerged from their collaboration. It explores the initial collaboration, the inclusion of a morals clause in the contract, Kanye's controversial comments, his growing ambitions, and the turbulent end of their partnership. Despite the controversy and public strife, Adidas and Kanye still collaborate on selling the remaining inventory, demonstrating the intricate nature of their relationship. The aftermath of their separation reveals the mutual dependence and possibility for unforeseen cooperation between the two parties.
Takeaways
• Adidas offers Kanye West a generous contract, including co-creating shoes and apparel, and sees his provocative nature as an advantage.
• Early signs of problematic behavior from Kanye, such as forcing executives to watch pornography and drawing a swastika on a shoe design, arise during the collaboration.
• The partnership between Adidas and Kanye continues, driven by the belief that Kanye's unique ideas and attention-grabbing nature can contribute to success in the fashion and sneaker industry.
• Adidas seeks to protect itself by including a morals clause in the contract, specifying specific behaviors that could result in the termination of the partnership.
• The contract offers Kanye substantial financial incentives, including royalty and upfront payment, and could extend for a full decade if certain financial targets are met.
• Kanye makes controversial statements and exhibits offensive behavior, but Adidas chooses to support him and manage the relationship rather than scrutinize or police his behavior.
• Kanye expands his ambitions beyond music, introducing Donda Academy and running for president in 2020, with Adidas deepening its commitment to him.
• Tensions arise between Adidas and Kanye regarding ownership rights, leading to a strained relationship and public backlash.
• Adidas terminates the contract, causing significant financial losses for both parties, but they collaborate to release the unsold inventory and generate substantial revenue.
• The aftermath of the split highlights the consequences faced by Adidas and the intertwined nature of business relationships.
