Music creative and Yeezy CEO Kanye West is known for fixating on certain topics and based on comments it’s been clear he’s been vexed that financial publication Forbes refused to describe him as a billionaire in their cover story of him from last summer.
While provided with anecdotal descriptions of his wealth, Forbes let West known he would have to provide document detailing his wealth before he could be declared a billionaire. (Forbes didn’t hold the document bar as high for Donald Trump, but that’s anther story.)
Forbes yesterday reported that West had provided financial documents showing his net worth is currently just over $1 billion. The figure is less than West’s reported claim his net worth is $3 billion but still.
More than officially stamping West as a billionaire, the article also provided a closer look at the structure of West’s deal with Adidas. According to Forbes, West 100-percent owns the Yeezy name, but is contractually tied to a five-year deal with Adidas, which produces, markets and distributes the shoes. Based on documents Yeezy finished 2019 with a revenue of $1.3 billion.
While total revenues were $1.3 billion, West takes home a 15-percent royalty fee for use of the Yeezy name. Adidas adds on additional charges, leaving West with a 11-percent cut, amounting to a $140 million check.
West’s apparel division operates separately from his deal with Adidas and according to documents isn’t profitable.
While West’s Yeezy annual income is far below $1 billion, Forbes estimates the stand-alone value of the company rings in at approximately $1.26 billion.
As for his assets outside of Yeezy, West boasts $17 million in cash and $35 million in stocks. As well, West owns $21 million in land and $81 million in “buildings and improvements,” which include his Los Angeles mansion, two $14 million Wyoming ranches. West also provided documentation for $3.8 million for “vehicles” and $297,050 for “livestocks.”
West also provided financial documents for his record label, G.O.O.D. Music along with the value of his recorded music and publishing rights, which West’s accountants estimate are worth $90 million.
Commenting on appraisals provided by West’s team, Forbes wrote, “We tend to look at self-appraisals somewhat skeptically. Aside from the music, half of all this presumably belongs to his wife, although she’s no slouch and that math goes two ways.”
Noting West carries $100-million in debt, the publication concluded, “Given the illiquidity of these myriad assets and the lack of independent backup, we’re giving all of this a 50-percent haircut, leaving about $125 million in assets outside of his Yeezy crown jewel.”
Tallying up the numbers, Forbes put West’s current worth at $1.3 billion. All told, it’s an amazing figure given it was just four years ago that West let the world know he was $50-million in debt. West made the declaration on Twitter, where he asked Facebook founder Mark Zuckerberg to “invest $1bn into Kanye West ideas.” Who would have thought Zuckerberg would have been wise to make that deal.