“You got a sister-in-law you would smash? I got four of them.”
This romantic lyric from Kanye West, a.k.a. Ye, in honor of his former Kardashian in-laws should be sufficient to inform any corporate sponsor about the hazards of being in bed with one of rap’s more controversial figures.
So it’s hard to feel much sympathy for Adidas after the company said it expects to lose more than a billion dollars on its unwanted Yeezy clothes and shoes.
Adidas dropped its nine-year affiliation with West last October after he made a series of antisemitic remarks.
Now it’s trying to figure out how to clear all that Yeezy merch from its shelves.
Adidas said in a statement its financial guidance for 2023 “accounts for the significant adverse impact from not selling the existing stock.”
The company said it could could lose big bucks if it can’t “repurpose” all that Yeezy stuff into something with less branding baggage.
Which is to say, the plan is to sell the goods without the Yeezy name attached.
If that doesn’t work, Adidas could donate the unsold merch to charity, or simply destroy it — a literal fire sale.
Advertisers aren’t averse to controversy. Depending on the product, a little edginess can be a boon.
But a lot of edginess, including deeply insulting comments about Jews, can be toxic for brands.
Which is why the smart move is for businesses to be much more careful in picking celebrity partners.
In Adidas’ case, they had to know full well what they were getting when they hooked up with a button-pusher like West.
That he grew steadily more unpredictable with time should have been a red flag for the international clothing conglomerate.
Maybe a billion-dollar hit is just the price you pay for trying to be trendy and topical.
Adidas said it “does not tolerate antisemitism and any other sort of hate speech.” It said West’s recent remarks were “unacceptable, hateful and dangerous.”
West’s utterances violated the company’s “values of diversity and inclusion, mutual respect and fairness,” Adidas said.
Cue the violins.
And let’s hope marketing departments at other companies are paying close attention.