It’s hard to imagine a celebrity like Kanye West going broke, but it turns out he’s a lot closer to that reality than we ever imagined!
It’s pretty clear Ye’s been facing a personal crisis as of this month. After spewing antisemitic remarks and supporting white supremacists, several brands have cut ties with him — including his most lucrative deal with adidas. The impact on his business has been so severe, he’s no longer a billionaire! And it turns out he may not be a millionaire for long either!
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According to Page Six insiders on Sunday who are familiar with the star’s financial situation, while Kanye has a large stash of cash, his vast expenses could cause him to face a financial catastrophe very soon! Wait, seriously?! Per the insiders, the Gold Digger artist has five main sources of income: his Adidas deal, Gap deal, music catalog, new music sales, and concerts. But now four of these have been either completely slashed or severely compromised because of his controversial comments.
Most notably, the Yeezy designer’s partnership with the German-born sneaker brand will do the most damage to his wallet. After ending its huge partnership with the rapper last week, the shoe company announced it would immediately halt payments to their former collaborator. Even if Kim Kardashian‘s ex-husband wants to fight the company on the decision, sources believe it will be hard for him to win because of his threats against Jewish people. Also, the incident in which he forced Adidas execs to watch porn could “mean they can play hardball,” an insider noted.
Gap, on the other hand, is a bit of a different story. The clothing brand actually ended its two-year deal with the songwriter in September, but they were still selling some YEEZYxGAP products up until Tuesday when they announced they were pulling the merchandise from shelves. Because of this, though, they still owe him some money from purchases made between the end of the deal and last week. It’s unlikely the Gap check will help Kanye out of his financial crisis, though, especially since his other streams of income — and ones you’d think would be most important for him — aren’t looking so hot either!
The easiest money for a rapper like Kanye to earn money should be from concerts since they provide a (usually) dependable source of quick liquid cash. But even venues don’t want to be associated with the 45-year-old right now! The performer was scheduled to have a show at SoFi Stadium in LA on Friday, but it was canceled by the venue, according to insiders. Yikes!
There’s nothing else on the books for the Grammy Winner and it’s likely add other concert venues will want to want him to the schedule in light of his scandals, sources revealed. So, if the dad of four is really desperate, what can he do??
Once upon a time, he might have considered selling his extensive music catalog, but even that isn’t very enticing to music execs these days! Back in September Billboard reported that West’s team tested the waters to see if there was interest in his catalog — which they wanted around $135 million for — but they didn’t appear to get any strong interest. Oof.
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As for new music, the Donda Academy founder reportedly has a new record in the can… just nobody to help him distribute it! According to the sources, he ended his longtime deal with Def Jam last year and has yet to find someone new to help him release his new tracks. An insider still believes Ye’s new album will provide a lifeline for him, but he’s unlikely to net as much as his previous records, especially since his songs have been pulled from streamers’ playlists. The source used:
“He’s a many-time Grammy winner and he has such a large following that his albums go platinum instantly.”
Despite the controversy, the confidant said it’s hard to believe nobody would be willing to accept such a can’t-lose deal, but we’ll have to wait and see! There’s been so much pressure for companies to cut ties with the celeb, it’d be hard to imagine anyone would want to join forces with him in the middle of the storm.
Right now, it seems royalties are his biggest and most steady stream of income, which net him around $5 million a year, per Billboard. But for Kanye, that’s just chump change! One insider joked:
“That’s about enough to pay his gas bill for his jet.”
While he has “a lot of cash by anyone’s standards,” a Page Six source continued, he also has a ridiculously “high cash burn rate.” This includes his $57 million Malibu home which he purchased last year and completely gutted. It’s still under construction — and is the most at risk if he truly hits financial troubles. He also has several other homes, but many of them are reportedly mortgaged.
Interestingly, this isn’t the first time the fashion designer’s been in money trouble before! Back in 2016, he was $54 million in personal debt after reportedly attempting to launch a fashion line and spending money too freely. A habit of his…
As one source put it, the A-lister’s opulent lifestyle has been primarily based on his Adidas deal, and the rest of his business ventures and streams of income were just the gravy on top. According to Forbes, he’s already lost about three-quarters of his net worth without the shoe company’s support. Yeesh!
Just to give you even more perspective about how bad this situation truly is, Page Six‘s sources estimate Kanye has more than $100 million in the bank. That’s as**t ton of money! But he spends so much, this will probably only last him a matter of “months.” Jeez. An insider explained:
“It’s all about cash flow and if slash[ed] when he can revive it.”
He seriously should have thought about all this before declaring so much hate speech all over the internet and in various interviews! Yoza. But clearly hasn’t done much thinking to begin with. Reactions?! Do you think he’ll hit this financial rock bottom soon?? Place your bets (below)!
[Image via Ivan Nikolov/WENN]