Insiders claim Kanye West is months away from bankruptcy
Just last week, Kanye West was a full-fledged billionaire and one of the richest figures on the planet.
These days, after one of the most epic meltdowns in recent memory, the rapper and fashion mogul could soon find himself on the brink of bankruptcy.
As you have no doubt heard, The West spews anti-Semitic hate speech it’s been a few weeks now and thankfully he’s starting to feel some of the effects.
Several brands have ended their relationship with Kanye, most notably Adidas.
The German sportswear brand was the maker of the wildly popular Yeezy sneakers in the West, but has now completely cut ties with the volatile designer.
The decision was the result of not only West’s anti-Semitism, but also a strange video in which the rapper forced an Adidas executive to watch a segment of a pornographic video.
According to A new report from page six, the Adidas deal accounted for most of West’s fortune, and the company’s exit clause allows them to stop paying immediately.
Kanye also lost his deals with Gap and Balenciaga, meaning the only revenue streams he still has are from his music.
West was scheduled to perform at SoFi Stadium in Los Angeles on Nov. 4, but that show was canceled.
And at this point, it’s hard to imagine any arena in the country risking hosting Kanye.
Obviously, West is still making money from the large catalog of music he released before the scandal, but in the age of streaming, that annual income isn’t as impressive as one might expect.
One industry insider estimated that West earns about $5 million a year in royalties, which isn’t much considering the size of his expenses.
“That’s enough to pay the gas bill for the plane,” the source laughed.
The insider added that West has “a lot of cash by anyone’s standards,” but he also has a “high cash burn rate,” meaning he needs the money now.
Kanye is reportedly ready to release a finished album, but his contract with distributor Def Jam is up in 2021, meaning it’s unclear how Kanye will bring his music to the masses.
In September, Billboard reported that West’s team began trying to sell his catalog for about $135 million, but failed to attract interest.
Most likely, now it would be even more difficult for them to find a buyer.
Still, Kanye has roughly $100 million in the bank, and the profits from his upcoming studio album should help him weather the storms ahead.
“He’s a multiple Grammy winner and has such a huge following that his albums go platinum instantly,” the insider noted.
However, money became Kanye’s concern almost immediately.
The source says Kanye will be fine for “months,” but his situation will only get worse as time goes on.
“It’s all about cash flow, and if he can revive it, if he can cut it,” the insider said.