Adidas announced the end of its several-year collaboration with musician Kanye West, now officially known as Ye, after reviewing it last month. Adidas announced that it would end its partnership with Ye immediately.

Adidas was far too slow to walk away from Kanye’s controversies. It had come under increasing pressure to drop the star following his anti-Semitic comments, including a tweet that resulted in Twitter suspending his account. Ye also wore T-shirts with the slogan “White Lives Matter” down the Paris catwalk.

West has already been dropped by Balenciaga and Gap. Adidas made Ye its problem by acting so late, risking a consumer backlash.

Given the high percentage of sales in the final quarter, the company estimated that the termination would have a short-term negative impact on its full-year net income of up to $246.5 million.

However, the long-term impact will be much bigger.

Shares in Adidas fell close to 5% on the news (as of Oct. 26, 2022).

Kanye West offered Adidas the perfect reason to end their long-running partnership — and in a way that may be less financially damaging to the sportswear giant.