Adidas has reached a settlement with rapper Kanye West to end their legal dispute over the termination of their Yeezy partnership, with no financial exchanges between the parties.

The German sportswear brand ended its partnership with West, now known as Ye, in late 2022 after he made antisemitic remarks on social media and in interviews. The split reportedly cost both parties hundreds of millions of dollars.

Adidas chief executive officer Bjorn Gulden confirmed the settlement during a quarterly earnings call, stating: "There aren't any more open issues, and there is no money going either way. Both parties said we don't need to fight anymore and withdrew all the claims."

The termination of the partnership left Adidas with Yeezy stock worth over £1bn. Rather than destroying the inventory, the company decided to sell it in batches and donate part of the proceeds to anti-hate groups. Their first sale of leftover sneakers generated $437m (£336.2m).

The company has made donations to several organisations, including the Anti Defamation League and the Philonise & Keeta Floyd Institute for Social Change.

A year after the split, Gulden defended West, describing him as "one of the most creative people in the world" and suggesting the termination was "very unfortunate, because I don't think he meant what he said and I don't think he's a bad person – it just came across that way."

The partnership's end came after West posted on X that he was "going death con 3 On JEWISH PEOPLE" in 2022. Adidas called these remarks "unacceptable, hateful and dangerous" and said they violated the company's values of diversity and inclusion.

West was subsequently banned from X and Instagram, dropped from a partnership with Balenciaga, and cut ties with talent agency CAA.

The New York Times reported in October 2023 that Adidas had allegedly ignored a decade's worth of West's objectionable outbursts and misconduct before the termination.

The company has announced it will continue selling its remaining Yeezy inventory, with a portion of proceeds going to charitable organisations.

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