Latest / Earn Your Leisure / Scholars Corner: Ye & Adidas Reach Agreement to Sell $500 Million Worth of Yeezy Products

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Scholars Corner: Ye & Adidas Reach Agreement to Sell $500 Million Worth of Yeezy Products · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Talk about Adidas and Yea, We spoke about this a
• 1:04
  Speaker 3: couple of weeks ago or now. More information has come out,
• 1:06
  Speaker 3: so let's see. Appears that Adidas and Yea have reached
• 1:10
  Speaker 3: an agreement for the remaining to sell the remaining inventory
• 1:15
  Speaker 3: that they have of the Easy brand, which is five
• 1:18
  Speaker 3: hundred dollars five hundred million dollars worth of product and easies.
• 1:23
  Speaker 3: Is this a win for Kanye or will Adidas ultimately
• 1:27
  Speaker 3: be manipulated for this favor?
• 1:30
  Speaker 4: What do you think?
• 1:30
  Speaker 5: Because we were talking about this yesterday and you made
• 1:32
  Speaker 5: a great point. It's like, what if they stressed this
• 1:34
  Speaker 5: out for a three year period and say, hey, we
• 1:37
  Speaker 5: haven't sold the five hundred million dollars worth of inventory,
• 1:39
  Speaker 5: or if they discount it while he's under this contract.
• 1:41
  Speaker 6: Yeah.
• 1:42
  Speaker 3: The thing about corporate is that this is why people
• 1:45
  Speaker 3: do like internal audits because you don't really know, like
• 1:49
  Speaker 3: forensic auditing on your books and different things in that nature,
• 1:52
  Speaker 3: because you can make up things right and somebody say, okay,
• 1:55
  Speaker 3: like we're going to pay you for you know, a
• 2:00
  Speaker 3: million downloads on your podcast, and then like they're the
• 2:04
  Speaker 3: only ones that see your downloads the data. How do
• 2:08
  Speaker 3: you know if you're getting one hundred downloads or if
• 2:10
  Speaker 3: you getting ten million downloads. They're giving you reports to say, okay,
• 2:13
  Speaker 3: you have one point five million downloads this month.
• 2:16
  Speaker 6: I don't know.
• 2:16
  Speaker 3: That's really not I don't know, like you know what
• 2:18
  Speaker 3: I'm saying. So it's like if you're saying, Okay, we
• 2:21
  Speaker 3: got five hundred million dollars worth of product, which is
• 2:24
  Speaker 3: the equivalent to four hundred thousand items, right, I don't
• 2:29
  Speaker 3: know you have four hundred thousand items?
• 2:31
  Speaker 7: Creeping Dragon?
• 2:32
  Speaker 6: Where is it? A?
• 2:33
  Speaker 3: Is the warehouse in China? Is the warehouse in Wisconsin?
• 2:36
  Speaker 3: Is the warehouse in the Philippines? I don't know. You
• 2:40
  Speaker 3: sell you said, what if you sell that in one month?
• 2:43
  Speaker 3: And then it's like, well, we only sold fifty fifty thousand,
• 2:45
  Speaker 3: we got more and you're just making more sell it
• 2:49
  Speaker 3: because it's like this is going well, so let's just
• 2:51
  Speaker 3: keep going doing this for another two years. So I
• 2:54
  Speaker 3: think it's gonna be interesting.
• 2:55
  Speaker 6: I think it is.
• 2:57
  Speaker 3: Kanye I don't think really loses in this situation. I
• 3:00
  Speaker 3: do think that he should still do something independent if
• 3:04
  Speaker 3: he can, if he can get his head together and
• 3:06
  Speaker 3: really like focus on that. But I feel like he
• 3:09
  Speaker 3: doesn't really get hurt by this. Adidas they're gonna have
• 3:12
  Speaker 3: to do something explaining because they took a strong stance
• 3:16
  Speaker 3: on him and separating them and saying that they don't
• 3:20
  Speaker 3: condone hate speech.
• 3:21
  Speaker 6: And they have people that they got an answer to.
• 3:24
  Speaker 3: They got people that are going to be questioning, well,
• 3:29
  Speaker 3: you just reverse this.
• 3:30
  Speaker 6: Now you're going back.
• 3:32
  Speaker 3: So how do you explain working with somebody two months
• 3:36
  Speaker 3: later after you just say that you can't work with them.
• 3:38
  Speaker 3: This is why I say, it's only business. It's only business.
• 3:41
  Speaker 3: There is no morals when it comes to this. And
• 3:44
  Speaker 3: that's why when people try to put morals, it's not
• 3:46
  Speaker 3: about morals. It's about if you can make money or
• 3:48
  Speaker 3: if you can't make And Kanye started to hurt the
• 3:53
  Speaker 3: business too much when he was talking too much because
• 3:56
  Speaker 3: it wasn't a moral thing. Because if the moral thing,
• 3:58
  Speaker 3: then you would have cut him when he said a
• 3:59
  Speaker 3: thing about black peop slavery.
• 4:01
  Speaker 6: So that's not the reason why you did it.
• 4:03
  Speaker 3: You did it because some of the things that he
• 4:05
  Speaker 3: said started to hurt your bottom line. You should have
• 4:08
  Speaker 3: just said that, because now you look like it's a
• 4:12
  Speaker 3: crazy reverse when it hasn't even been six months. It's
• 4:16
  Speaker 3: been like three months. Like three months ago you said
• 4:20
  Speaker 3: this is over, we can't do it. I mean, did
• 4:22
  Speaker 3: you lose two billion dollars and you say it, okay,
• 4:25
  Speaker 3: let's think about this, and.
• 4:25
  Speaker 8: You start looking at four projections and you're saying to yourself, wait,
• 4:28
  Speaker 8: we lost two billion, but like we still had him
• 4:30
  Speaker 8: part of our calendar fiscal year for half the year.
• 4:33
  Speaker 5: What is it going to look like when we don't
• 4:34
  Speaker 5: have him for any nine billion right in two or
• 4:37
  Speaker 5: three years.
• 4:38
  Speaker 8: I think from from Kanye's standpoint, it's interesting because he
• 4:43
  Speaker 8: has so much leverage he doesn't have to do it.
• 4:46
  Speaker 8: But from a monetary standpoint, it makes sense if he
• 4:48
  Speaker 8: needs the money to do it. Because it's the first
• 4:50
  Speaker 8: time we had this conversation. Earlier, it was like for
• 4:52
  Speaker 8: so long, especially in our community and hip hop culture,
• 4:55
  Speaker 8: we couldn't quantify the impactac It's tough to quantify it, right,
• 4:59
  Speaker 8: Like we'll tell you like, yeah, with this much of
• 5:01
  Speaker 8: the consumer, but the people are buying it because they're
• 5:03
  Speaker 8: seeing us wear it, and so that you got to
• 5:05
  Speaker 8: take that into account. When you look at the bottom line,
• 5:06
  Speaker 8: it's like, yeah, whatever, Like Kanye was the first time
• 5:09
  Speaker 8: you were like, all right, you can see the cultural
• 5:12
  Speaker 8: impact and the financial impact come together. And then when
• 5:17
  Speaker 8: the financial impact was taken away, look at the bottom.
• 5:20
  Speaker 7: Line of your company.
• 5:21
  Speaker 4: Yeah, and I think it was.
• 5:22
  Speaker 8: And look at the bottom line for the rest of
• 5:24
  Speaker 8: the people on your company since that moment.
• 5:26
  Speaker 5: That's true while in a recession, while inflation is there,
• 5:29
  Speaker 5: spending is tighter. I think the Adidas executives made a
• 5:32
  Speaker 5: huge mistake that a lot of big corporations make. They
• 5:34
  Speaker 5: don't talk to the audience and don't know what the
• 5:37
  Speaker 5: audience really wants.
• 5:38
  Speaker 4: So like when you.
• 5:39
  Speaker 5: Took easy away from it, the shoes will really worth
• 5:41
  Speaker 5: like thirty bucks, Like no one wanted to wear them.
• 5:44
  Speaker 5: It was like wearing like Payless Nikes with the big
• 5:48
  Speaker 5: foosh on the side right like yeah, and without aim
• 5:51
  Speaker 5: being attached to it. So when you have that kind
• 5:53
  Speaker 5: of mistake and don't have an athlete in place or
• 5:55
  Speaker 5: any succession plan, yeah, that's a huge mistake. I thought
• 5:59
  Speaker 5: they They probably thought they can push them away and
• 6:01
  Speaker 5: capitalize on the inventory and then backfire. And the same
• 6:05
  Speaker 5: way what we saw going back to Apple when they
• 6:07
  Speaker 5: put Steve Jobs out and Skully rand Apple and it
• 6:09
  Speaker 5: was like, well, if we have a few good ideas,
• 6:11
  Speaker 5: the business will run well. But sometimes you have a
• 6:13
  Speaker 5: person that's so important to the brand ethos that you
• 6:16
  Speaker 5: can't detach them away.
• 6:17
  Speaker 6: But also it goes down to it's like Michael Joyan
• 6:21
  Speaker 6: and leaving Nike.
• 6:22
  Speaker 3: Yeah, right, Like at a certain point, it's danger when
• 6:26
  Speaker 3: one person has so much influence over a company.
• 6:29
  Speaker 6: That's not a good business model.
• 6:32
  Speaker 4: Well, it depends on how you structure to do.
• 6:33
  Speaker 3: No matter what, no matter how you structure to deal,
• 6:36
  Speaker 3: because God forbid, somebody can die, somebody can get sick.
• 6:39
  Speaker 3: You never want to have like there's nobody that even
• 6:43
  Speaker 3: in CEO included.
• 6:45
  Speaker 6: Disappears from Google and it's over.
• 6:48
  Speaker 3: Disappears from Apple and it's over, like Steve Jobs died
• 6:50
  Speaker 3: and Apple is still running. Right, It's like, it's that's
• 6:55
  Speaker 3: a dangerous business model when you have a star player approach.
• 7:00
  Speaker 4: To think even worse having no star.
• 7:03
  Speaker 3: Well, not necessarily, because it's a slow grind, right, Like
• 7:06
  Speaker 3: I would rather take this the no star approach and
• 7:10
  Speaker 3: slow grind it out.
• 7:12
  Speaker 9: This episode is brought to you by P and C Bank.
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• 9:02
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 9:06
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 9:10
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 9:14
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 9:18
  Speaker 1: some of the heinous migrant criminals caught because of President
• 9:22
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 9:26
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 9:30
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 9:34
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 9:37
  Speaker 1: are here illegally, your next you will be fine nearly
• 9:41
  Speaker 1: one thousand dollars a day, imprisoned and deported, you will
• 9:45
  Speaker 1: never return. But if you register using our CBP home
• 9:49
  Speaker 1: app and leave now, you could be allowed to return legally.
• 9:53
  Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
• 9:58
  Speaker 1: border and families.
• 9:59
  Speaker 2: Will be Protecting sponsored by the United States Department of
• 10:02
  Speaker 2: Homeland Security.
• 10:02
  Speaker 3: As long as I'm profitable, as long as I'm making money.
• 10:05
  Speaker 3: Because here's what happens with star players. You learn this
• 10:08
  Speaker 3: from sports, and you learn this from music. Record labels
• 10:12
  Speaker 3: and sports are very similar. When a player go through
• 10:18
  Speaker 3: the ranks, right, they're extremely humble and they're willing to
• 10:21
  Speaker 3: learn and their team player. At some point they start
• 10:25
  Speaker 3: to excel more than everybody else and they go from
• 10:30
  Speaker 3: being a team player and being a role player to
• 10:33
  Speaker 3: being a star player. When you become a star player,
• 10:37
  Speaker 3: you're treated as a start player. Then you start to
• 10:40
  Speaker 3: realize that you're a star player. Then at some point
• 10:43
  Speaker 3: in time, your actions start to change. So now you
• 10:47
  Speaker 3: have to deal with that start player differently. The coach
• 10:50
  Speaker 3: can't scream at Lebron. Lebron com missed.
• 10:53
  Speaker 4: It doesn't bring the value that Lebron does.
• 10:54
  Speaker 6: But listen, but Lebron con missed all Star practice.
• 10:57
  Speaker 3: Lebrono have to go like, these are things that you're
• 10:59
  Speaker 3: a four or did Michael Jordan could scream at a referee, right,
• 11:03
  Speaker 3: Tyrone Luke couldn't. So the problem with that is that
• 11:07
  Speaker 3: it's extremely difficult to deal with personalities like that.
• 11:11
  Speaker 4: That's true.
• 11:12
  Speaker 3: You don't realize that until you have to deal with
• 11:14
  Speaker 3: the personality most people could. You can't have sympathy for
• 11:17
  Speaker 3: somebody until you're in their shoes. If you're not a coach,
• 11:20
  Speaker 3: if you're not running a record label, if you're not
• 11:22
  Speaker 3: the CEO of a company that has to deal with
• 11:25
  Speaker 3: the nonsense, it's difficult to understand it.
• 11:29
  Speaker 5: There was very difficult for Cross two, and then when
• 11:31
  Speaker 5: he broke that team up. What is Jered Cross doing?
• 11:33
  Speaker 6: You know what? I'm just saying it's not But it's
• 11:37
  Speaker 6: not to say that.
• 11:37
  Speaker 3: It's not to say that star players aren't needed, because
• 11:40
  Speaker 3: of course they're beneficial. But at some point in time,
• 11:44
  Speaker 3: the headache becomes more than the talent.
• 11:49
  Speaker 6: The headache becomes more.
• 11:49
  Speaker 5: Than Can I give you an example where the inverse happened. Yes,
• 11:53
  Speaker 5: Tom Brady and Belichick, but now go this is me
• 11:56
  Speaker 5: Ian red Panda rebellion. Belichick was overrated as.
• 12:00
  Speaker 6: Coach, But at what point we.
• 12:03
  Speaker 4: Saw when Thomas left.
• 12:05
  Speaker 7: Er the fact that he hasn't won since Thomas.
• 12:07
  Speaker 5: And has had no If we want to talk about
• 12:10
  Speaker 5: cultural impact, boy, But here's the thing.
• 12:12
  Speaker 6: Here's the thing.
• 12:14
  Speaker 3: Coaches most of the time outlift players, but owners outlift
• 12:19
  Speaker 3: all of them.
• 12:19
  Speaker 4: Absolutely, that's a great bar set.
• 12:21
  Speaker 3: Of Again, coaches outlift players, owners outlive everybody. Here's the thing,
• 12:27
  Speaker 3: Patriots have never been the same since Tom Brady left.
• 12:30
  Speaker 3: Here's also a thing. Nobody is bigger than the system.
• 12:34
  Speaker 3: The Patriots still make billions of dollars every single year.
• 12:37
  Speaker 3: So who lost Robert Craft is always that's the purpose
• 12:40
  Speaker 3: of being an owner. Equity of average. He's still coaching, He's.
• 12:46
  Speaker 4: Still gonna be out of.
• 12:48
  Speaker 3: That, out of us bigger than the program.
• 12:51
  Speaker 8: That's what the running back to the Kanye thing like,
• 12:53
  Speaker 8: he's in a position where he can have the leverage.
• 12:56
  Speaker 8: Right So now if he even wanted to create something
• 12:59
  Speaker 8: or have equity, it's like, yo, I'm not I don't
• 13:02
  Speaker 8: want to do this deal.
• 13:02
  Speaker 7: I'm gonna watch y'all keep bleeding.
• 13:04
  Speaker 8: Because there is no saying like, how do I know
• 13:05
  Speaker 8: when you sell F one hundred million, you're gonna.
• 13:07
  Speaker 7: Stop saying it. We're gonna stop sales.
• 13:09
  Speaker 8: And say like, well, well we've reached out our mark
• 13:11
  Speaker 8: and thank you for the partnership and go on in
• 13:13
  Speaker 8: your way. There is no way to know, right, they're
• 13:15
  Speaker 8: probably holding it like, Yo, we're gonna sell it. They're
• 13:17
  Speaker 8: probably projecting like we're gonna do two billion in sales,
• 13:20
  Speaker 8: and he can't go back to Nike.
• 13:21
  Speaker 7: Yeah, And it's not like.
• 13:21
  Speaker 8: We're gonna be yo, Hey, we're gonna open the books
• 13:23
  Speaker 8: and show you. We're just gonna agree to these terms
• 13:25
  Speaker 8: and then we'll figure this thing out. There is no way.
• 13:27
  Speaker 8: But he has leverage. Now if he says, yo, I
• 13:29
  Speaker 8: don't want to agree to this, you know why. You
• 13:30
  Speaker 8: know why he doesn't have leverage in this scenario, goay
• 13:35
  Speaker 8: that money. That's what I said, can't go to war
• 13:37
  Speaker 8: less your money's right, That's what I said.
• 13:40
  Speaker 6: I said that.
• 13:40
  Speaker 8: I said if he needs it from a monetary standpoint
• 13:44
  Speaker 8: right now, he may say like, I'm comfortable living in
• 13:46
  Speaker 8: my backpack with forty million, right.
• 13:49
  Speaker 7: He might be comfortable doing that.
• 13:50
  Speaker 8: Or he might say, like, Yo, my ego knows that
• 13:53
  Speaker 8: I'm I'm worth ten billion, and if I ordered me
• 13:56
  Speaker 8: to get back there, I gotta get this capital to
• 13:58
  Speaker 8: build what I really want. And that might be something
• 14:00
  Speaker 8: he could do too, right, But it's just about where
• 14:03
  Speaker 8: where you're at with it, because he might be like,
• 14:05
  Speaker 8: remember it, for like two months, he was just I'm
• 14:07
  Speaker 8: living at my book back and you rarely see him
• 14:09
  Speaker 8: at the additional hotel in LA and he's in the lobby,
• 14:12
  Speaker 8: and I.
• 14:12
  Speaker 4: Think he knew the downfall was coming in he felt it. Yeaheah.
• 14:15
  Speaker 7: But if he comfortable in this space now, I don't.
• 14:18
  Speaker 4: Know, that's a hard fault. No, we're gonna be real.
• 14:20
  Speaker 7: No, I don't know. I don't know. He's a different
• 14:23
  Speaker 7: type of do. I don't know.
• 14:25
  Speaker 5: Good lesson if you have something good, don't ruin it,
• 14:27
  Speaker 5: whether that's the executive, star player, coach or read your paperwork. True,
• 14:32
  Speaker 5: because we don't even know, we don't know what the
• 14:33
  Speaker 5: percentage of the say to say a five hundred million.
• 14:36
  Speaker 4: He's not going to get a hundred million dollars out
• 14:38
  Speaker 4: of this deal.
• 14:38
  Speaker 7: No, you're not.
• 14:39
  Speaker 6: And once again, nobody's bigger than the program.
• 14:43
  Speaker 7: Never.
• 14:44
  Speaker 3: I understand when you understand that you'll go far in life.
• 14:47
  Speaker 3: When you don't understand that, you'll have trouble.
• 14:50
  Speaker 5: If that's true, Adidas wouldn't wouldn't have got went back
• 14:53
  Speaker 5: to reconcile what they did wrong to get him. They
• 14:54
  Speaker 5: would have been able to run the program without them.
• 14:56
  Speaker 7: That's short term.
• 14:57
  Speaker 8: That's short term, right, long term is going to exist
• 15:00
  Speaker 8: twenty years probably after this.
• 15:02
  Speaker 7: Well we'll see, right, But the thing is, yeah, it's
• 15:05
  Speaker 7: the same game plan. Right.
• 15:06
  Speaker 8: Nike knows at some point Jordan is going to stop
• 15:09
  Speaker 8: playing basketball. So what they do They create Team Jordan.
• 15:13
  Speaker 7: Right. That wasn't successful. Nobody even nobody even thinks about that.
• 15:16
  Speaker 8: When Eddie Jones and Ray Allen were doing Jumpman, nobody
• 15:19
  Speaker 8: was jump in. They needed to bring back the retros
• 15:22
  Speaker 8: of the guy who made the money. But while they're
• 15:24
  Speaker 8: doing that, they're looking for the next talent. Oh there's
• 15:26
  Speaker 8: this guy from La Oh, we got to get him.
• 15:28
  Speaker 8: Oh this is kid from Acron, We definitely have to
• 15:31
  Speaker 8: get him.
• 15:31
  Speaker 5: And they also Nike also used Kanye and don ce
• 15:34
  Speaker 5: and their cultural influence for no equity to make.
• 15:37
  Speaker 7: The retros pop. This is also true.
• 15:39
  Speaker 5: I remember when don Cee was the first one, don
• 15:42
  Speaker 5: Cee and killing retros, retros back. That's a fact. Negotiate
• 15:46
  Speaker 5: from the very beginning, so you don't get screwed over
• 15:48
  Speaker 5: because there's no lower team business, only what the PaperWorks.
• 15:51
  Speaker 4: As.
• 15:52
  Speaker 10: There you have it, my graduates from my school being
• 15:57
  Speaker 10: forced back drops.
• 16:13
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 16:17
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 16:21
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 16:25
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 16:29
  Speaker 1: some of the heinous migrant criminals caught because of President
• 16:33
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 16:37
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 16:41
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 16:45
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 16:48
  Speaker 1: are here illegally, your next you will be fine nearly
• 16:52
  Speaker 1: one thousand dollars a day, imprisoned and deported, you will
• 16:56
  Speaker 1: never return. But if you register using our CBP home
• 17:00
  Speaker 1: app and leave now, you could be allowed to return legally.
• 17:04
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 17:09
  Speaker 1: border and families will be protected.
• 17:11
  Speaker 2: Sponsored by the United States Department of Homeland Security,