Peter Vander WallFounder driving creative community growth

Adidas is going BROKE?

Name: Adidas is going BROKE?
Uploaded: 2023-06-19T14:15:02+00:00
Duration: 44 s
Channel: Peter Vander Wall
Description: A short YouTube commentary (by Peter Vander Wall, uploaded June 19, 2023) analyzing Adidas’s financial exposure from ending its partnership with Kanye…

19 Jun 2023 · 1 min

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0:44

A short YouTube commentary (by Peter Vander Wall, uploaded June 19, 2023) analyzing Adidas’s financial exposure from ending its partnership with Kanye West. The speaker states Adidas will lose $250 million, notes Yeezy accounted for 10% of Adidas’s topline (over $2 billion) and that the partnership lasted nine years, and draws the broader moral about choosing business partners carefully.

Questions this video answers

$250 million.

10%.

Over $2 billion.

Nine years.

Created and uploaded by Peter Vander Wall on June 19, 2023.

Chapters

Adidas is going to lose $250 million from breaking up with Kanye. Worst business deal of all time, right? Well, maybe not. Kanye was actually a huge rainmaker for Adidas. So Kanye and Adidas are partnered up on the brand Yeezy. And last year, Yeezy accounted for 10% of Adidas top line revenue. That's over $2 billion. When everything's said and done and they've been partnered up for nine years, clearly they've made a ton of money together. So with that in mind, $250 million really just sounds like a drop in the bucket. But the real moral of the story here is to choose your business partners carefully. I think Dave Ramsey said it best. He said the only ship that won't sail is a partnership. And while business partners can be really great, you kind of have to treat it like a marriage. It'll be great while it lasts, and it'll be great if it works out. If you end up breaking up, that's going to be a lot of money and a lot of heartache.