Adidas is seeking to recover $75 million from Ye, formerly Kanye West, related to his alleged mishandling of marketing funds worth $100 million annually, according to Bloomberg. The dispute is in arbitration.
Adidas alleges that it deposited $75 million into two Yeezy bank accounts, but according to Bloomberg, Ye and his associated companies “mishandled almost all of the marketing funds.” They reportedly failed to separate the funds properly and used them for unauthorized purposes.
Business Insider, which reported it witnessed the contract signed by both parties, confirmed that the marketing funds should not be “commingled,” and if any funds are utilized improperly, Ye would be required to reimburse Adidas. As per the report, the court filing has redacted the contract’s definition of appropriate marketing purposes.
Adidas attempted to freeze the eight-figure sum in court in May, but its bid was unsuccessful; however, a U.S. District Judge expressed the likelihood of Adidas recovering the funds through arbitration, as reported by Bloomberg.
Adidas filed the case against Yeezy on November 11, just weeks after Adidas publicly terminated its long-standing relationship with Ye.
