Adidas accuses Kanye West of ‘mishandling’ $75 million fund: Report

livemint.com:

Business Insider citing Bloomberg, the rapper is currently embroiled in a legal dispute with the sportswear giant, and the matter is under arbitration. The disagreement centers around a $100 million annual marketing fund, as disclosed in court documents viewed by Insider. Adidas alleges that it deposited $75 million into two Yeezy bank accounts, but according to Bloomberg, Kanye West (Ye) and his associated companies "mishandled almost all of the marketing funds." They reportedly failed to maintain proper separation of the funds and used them for unauthorized purposes.

Insider, which has seen the contract signed by both parties, confirms that the marketing fund should not be "commingled," and if any funds are utilized improperly, Yeezy would be required to reimburse Adidas. As per the report, the court filing has redacted the contract's definition of appropriate marketing purposes. In a 2020 interview on Nick Cannon's podcast, Kanye West (Ye) revealed that he utilized $50 million of the Yeezy marketing funds for his gospel choir tour called "Sunday Service," which also involved arranging flights to Jamaica for 120 individuals.

"The Yeezys, they were selling themselves," he said. "So instead of paying for ads, I invested it in the church." He did not specify whether this money had come from Adidas. In May, Adidas attempted to freeze the eight-figure sum in court, but their bid was unsuccessful.