Staff Writer
An attempt by Adidas AG to have the $75 million it paid to Ye, the musician and designer formerly known as Kanye West, to promote the Yeezy shoes, frozen in court was unsuccessful.
Adidas’s request for a temporary restraining order was denied by US District Judge Valerie Caproni in Manhattan on Tuesday during a hearing regarding its dispute with Ye over the dissolution of their partnership as a result of Ye’s antisemitic remarks.
Adidas had argued that the funds were in danger by citing public allegations that Yeezy might be heading toward insolvency. Caproni, however, claimed that the corporation had not presented any evidence “beyond tabloid speculation” to back up that claim. She added that Adidas had failed to demonstrate that it would experience “irreparable harm” if the the money wasn’t put on hold.
According to Caproni, it was likely that Adidas would win the $75 million arbitration award after arguing that Ye broke his contract by expressing anti-Semitic slurs. However, she claimed that the business had failed to demonstrate that a money restraining order would be appropriate under the law.
A representative for Ye said that the collaboration agreement stipulated that Yeezy would earn $100 million from Adidas every year in quarterly payments at the hearing before Caproni on Tuesday. Although it’s unclear if the $75 million Adidas wanted to freeze is a portion of that yearly payment, the firm maintains that the money can only be used for marketing.
Adidas’s attorney, Mark Goodman, declined to respond to questions about the decision.
The case number is 22-mc-00320, Southern District of New York (Manhattan) US District Court, In the matter of Application of Adidas AG for an Order of Attachment in Aid of Arbitration.
