German sportswear company Adidas severed ties with African-American businessman and rapper Kanye West on Wednesday after nearly a decade of a successful business partnership.
The news comes amid a flurry of reactions sparked by the anti-Semitic comments made by West, now known as “Ye,” nearly two weeks ago.
According to Forbes, the termination of the lucrative deal with the German sportswear manufacturer “caps a stunning, self-induced downfall” for the musician-turned-business-mogul, whose personal fortune stems from the multi-million dollar partnership.
Forbes stated that West is no longer a billionaire, with the Adidas deal accounting for $1.5 billion of his $1.9-billion fortune.
The majority of his billion-dollar fortune is based on a multiple of annual earnings from Adidas, according to the U.S. business magazine, and the royalties he received from the sportswear giant are comparable to royalties from music catalogs or film residuals.
“Without Adidas, Ye is now worth $400 million,” Forbes said, adding that the rest of his fortune is made up of real estate, cash, music catalog, and a five-percent stake in ex-wife Kim Kardashian’s shapewear company, Skims.
Adidas revealed in a press release issued from its headquarters in Herzogenaurach, Germany, that its decision to cut ties with Ye and his Yeezy brand came after a thorough review of his recent comments, which violated the company’s values of diversity and inclusion, mutual respect, and fairness.
Following the decision to end the partnership with the multi-industry creative entrepreneur, the sportswear company announced that it will cease production of Yeezy-branded products and cease payments to Ye’s businesses.
The decision to cancel the deal, which began in 2013 and grew the Yeezy line into a brand that accounted for up to €1.5 billion ($1.47 billion) of Adidas’ total sales over the last decade, will cost the German behemoth up to €250 million ($247 million) in earnings this year.
