Kanye West’s decision to go into the apparel business in 2009 has etched his name on the sands of time. The Chicago-born rapper and businessman is now worth 6.6 billion making him the richest black American on earth according to Bloomberg.
This new information was revealed when a reputable Swiss investment bank UBS Group AG released an official document on the new Kanye West deal.
The document was obtained and reviewed by Bloomberg before it was made public. The latest Kanye West Yeezy deal involves two of the world’s biggest names in the apparel business – Adidas AG and Gap Inc.
History-making Deals with Adidas and Gap
According to Bloomberg, West latest deal with Adidas AG and Gap is valued at $3.2 billion to $4.7 billion by UBS Group AG.
West’s new clothing line for GAP is expected to cost $970m from the total of the deal.
According to Bloomberg the deal was signed last year and is expected to last for 10 years. West is expected to make clothes for men, women, and kids under the Yeezy Gap Label.
The Gap management is expecting to hit $150m in sales at the ending of 2022 and over a billion dollars in 8 years.
The apparel brand hopes to appeal to the younger demographic by bringing West on board.
When Kanye West struggled with debts
The financial journey of Kanye West over the last decade is marked with up and downs. He has gone from numbing lows to astronomical heights in one of the most unstable financial paths ever seen.
According to Fox News, West made $115m in 2018 but still ended the year in a $35m debt. He was saved by a $68m Tax refund.
Earlier on in 2016, Kanye West spoke to BET on his debt status and his current struggles in the apparel industry. He racked up a $16m debt trying to float his apparel brand.
“I was trying to play a sport that’s a billionaire sport. It’s not a millionaire sport and I’m proud of the debt,”
“I don’t care about somebody’s Ghost (Phantom) or somebody’s house. I care about my vision,” he said.
In 2015, West announced via his Twitter page that he was in a $53m debt. This was confirmed by Vanity Fair which alleged that he racked up the debts pursuing his fashion Industry goals.
He once asked Facebook founder Mark Zuckerberg to invest $1bn in his fashion apparel.
- According to Bloomberg, an unedited balance sheet of Kanye West’s finances revealed that the rapper was earning $100m in royalties from his Adidas business venture.
- In addition to that, he earned over $122 million in cash and stock and more than $1.7 billion in other assets.
- A 2020 valuation by a US-based valuation company placed his entire music catalog at $110.5 million.
- His latest deal with Adidas is worth between $3.2 billion to $4.7 billion. His second deal with Gap is valued at $1billion.
- Forbes officially named Kanye West a billionaire mid-last year and attributed this status to his 100% ownership of the Yeezy brand.
- According to Celebrity Net worth, West is now officially the richest black American at the moment. At 6.6bn he has successfully displaced Robert F. Smith’s, David Steward’s, and Oprah Winfrey to clinch the top position.
What you should know
- Kanye West owns 100% of the Yeezy Brand. A smart move that has been hailed by most business analysts. West did not sell the brand to any of the major shoe brands in the industry. He solely owns the brand, while Adidas just makes the shoes and distribute them.
- According to Bloomberg, the Yeezy Sneakers are Kanye West’s most successful apparel business brand. The Swiss investment bank UBS attributed to this in their official statement where it confirmed that the sneaker business is growing at an alarming rate.
- According to the UBS, Kanye netted $191 million in royalties from his 2020 operations.