African-American billionaire Kanye West, who is known officially as “Ye,” has seen his net worth decline by $1.6 billion to $400.1 million as a result of the termination of his lucrative multiyear contract to design the sneaker brand Yeezy for Adidas.
According to data retrieved from Forbes, Ye’s net worth has fallen by more than $1.6 billion in the week following Adidas’ decision to cut ties with him and his brand, from $2 billion to $400.1 million at the time of writing this report.
The billion-dollar drop in his net worth, which could be attributed to the termination of the lucrative deal with the German sportswear manufacturer, was triggered by a series of offensive and antisemitic comments that he made, which Adidas felt violated the company’s values of diversity and inclusion, mutual respect, and fairness.
The termination of the lucrative deal, which marks his exit from the exclusive billionaire club, “caps a stunning, self-inflicted downfall” for the musician-turned-business-mogul, whose personal fortune stems from the multi-million dollar partnership.
Left with no other partnership to fall back on in the retail industry, Ye’s $400-million fortune is made up of real estate, cash, music catalog, and a five-percent stake in his ex-wife Kim Kardashian’s shapewear company, Skims.
In September, Ye announced the termination of the contract between his company, Yeezy, and Gap, a U.S. global clothing and accessories retailer, stating that the American clothing and accessories retailer failed to meet its obligations under the agreement, which included distributing Yeezy products in its stores by the second half of 2021 and opening dedicated Yeezy Gap stores.
The decision comes more than two years after he announced a retail partnership with Gap to launch the Yeezy Gap brand, which will design and deliver a new line of elevated basics for men, women, and children at affordable price points.