Kanye West Reportedly Headed for Financial Crisis
Kanye West’s empire is falling down.
After a chaotic month, including his terminated deals with Adidas and Gap, a new report suggests that the embattled rapper could be in financial trouble soon if he doesn’t find a way to turn things around.
Sources familiar with his finances tell Page Six that West has five sources of income and that four of them have been either completely shut down or badly compromised by his anti-Semitic and anti-Black remarks.
Several of his business partners have cut ties in the wake of his recent behavior. Last week, Adidas announced that it was terminating their partnership and that it would immediately cease payments. His multi-year deal with the German sportswear company was his main source of income.
The former billionaire, whose net worth dropped to a reported $500 million after the adidas deal ended, announced that he had lost $2 billion in one day. “The money is not who I am. The people is who I am,” said West.
Even his concerts have taken a hit. Ye was scheduled to headline a show at SoFi Stadium in Los Angeles on Nov. 4, but it was reportedly canceled by the venue and it’s unlikely venues will book him amid the scandals.
He has also recorded a new album, but there’s no deal to distribute it at this time. His deal with Def Jam ended last year and he is currently without a record label or a music publisher.
While the major labels are likely out of the equation for now, he could strike a deal with indies like Empire, Create Music Group, or France-based Believe.
“It would have to be someone willing to be ostracized,” a veteran music industry executive told Variety. “The other artists on the label or distributor, not to mention the staff, probably wouldn’t stand for it.”
But the music alone won’t be enough to support his opulent lifestyle. Ye nets around $5 million a year in royalties, according to Billboard. “That’s about enough to pay his gas bill for his jet,” an insider told Page Six.
While he still has “a lot of cash by anyone’s standards,” he also has a “high cash burn rate.” Sources estimate that even though he has more than $100 million in the bank, he probably has enough to last a matter of “months.”
“It’s all about cash flow and if slash when he can revive it,” said a source.