The news of Kanye West becoming a billionaire has been making the rounds in the last 48 hours.
The source of this rumor can be traced back to earlier this week on Jimmy Kimmel Live when Kanye’s Wife, Kim Kardashian was asked to talk about her wealth. She gave Jimmy and the world a coy answer:
“I would say my husband is, so that makes me one, right? Close by proximity.”
These are the few words that have driven hundreds of websites into putting up articles with titles such as; “Kanye West is now a Billionaire”, or “Kanye West could soon achieve Billionaire Status”. While providing completely no evidence to back up this claim.
A few of the reliable websites among them, however, made reference to a news report on TheBlast.com to support their stories.
Why do people think Kanye is worth a billion dollars?
According to TheBlast, Kanye’s fashion brand, Yeezy recently received a valuation of around $1.5 billion which they claim is from a “source” and that automatically makes him a billionaire.
While there is no doubt about it that Kanye has been very successful in his music career and with his fashion brand, Yeezy; if his collaboration with Adidas is the same as every other brand-celebrity partnerships, then we may not consider Kanye as the actual OWNER of Yeezy.
In a situation where the deal falls apart, the sports brand may let him purchase the Yeezy brand from them. Which would cost him a lot of money.
A typical example is the current scenario between Roger Federer and Nike on the rights to the RF brand.
The fact remains that the major player in the Yeezy brand is Adidas and Kanye West is only being given royalties. This is even the major reason why he split with Nike in 2013 as they weren’t paying him royalties.
But when Adidas came calling, with a huge deal which included being paid royalties, his response was positive.
This is an example of an article jumping onto the fake headline this week
Kanye West could soon be a billionaire https://t.co/qeJPdD1tHU
— The Telegraph (@Telegraph) August 3, 2018
Let’s take a look at another celebrity; Michael Jordan…
Nike is the actual owner of the Jordan brand and not Michael. Michael is being paid royalties depending on profits and sales achievements.
According to reports, Michael Jordan earns around $80 – $90 million annually from the Jordan brand royalties.
As recent as May 2018 when CNBC conducted an interview with the CEO of Adidas, Kasper Rørsted, he told the interviewer, Sara Eisen, that:
“There is no doubt the Yeezy brand has a fundamental impact on our overall brand position, but in the bigger context of us being a $25 billion company, it’s a small part of our company.”
We hope you didn’t miss the part where he said: “it’s a small part of our company.” What we are just trying to point out in this article is Kanye West becoming a billionaire needs an evidence that is more substantial than the words of Kim Kardashian on the Jimmy Kimmel show.
The claim is unacceptable until a reliable news media such as the Wall Street Journal finds about more about the sales, revenue, royalties and the partnership terms between Adidas and Kanye West. Until then, we hold firm that he is not a billionaire.
How much is Kanye West worth?
As of the present moment in time, we estimated Kanye West’s net worth to be $160 million dollars. Let’s not get ahead of ourselves just because of one news story claiming him to be worth over a billion dollars.