Kanye West could be just months away from financial catastrophe, Page Six is told.
As corporations abandon the rapper and industry figures condemn him, sources say that while he has a lot of cash, he also has big expenses and could be in trouble soon if he doesn’t find a way to turn the tables. course.
Sources familiar with his finances say West, 45, has five sources of income, and that four of them have been completely shut down or severely compromised by his anti-Semitic outburst and his support of white supremacists.
We’re told that in recent years, West has made money from his big Adidas deal, his Gap deal, his music catalog, selling new music and concerts.
Adidas, which is the real engine of his massive wealth, already said earlier this week that after its massive Yeezy sneaker deal with him ended, it would immediately suspend payments.
Experts say West, who has been losing business, has a lot of cash in the bank, but also extremely high expenses.
And sources say it will be difficult to fight that decision, because his threats against Jews and the incident in which he showed Adidas executives porn “means they can play hardball,” according to one source.
The source says that Gap, which ended its two-year contract with him in September, owes him some money for the YEEZYxGAP products he sold between the end of the contract and Tuesday, when he announced that he was pulling their products from shelves. about the controversy.
The vast majority of West’s wealth comes from his deal with Adidas for their Yeezy line.
As for concerts, which should be the easiest money a star like West can earn and a reliable source of quick liquid cash, the rapper was due to have a show at SoFi Stadium in Los Angeles on November 4. It was cancelled. by the venue and he has no other bookings, according to insiders, who add that venues are unlikely to hire him amid the scandals.
As for new music, we’re told West has an album in the can, but there’s no deal to distribute it at the moment. His contract with the Def Jam label is up in 2021. One source says the record will likely remain a lifeline, but he’s unlikely to get as much as previous albums.
Forbes estimates that West has lost three-quarters of his net worth after losing his sneaker deal.
“He’s won multiple Grammy Awards and has such a following that his albums go instantly platinum,” the source said, adding that it’s hard to believe anyone would be willing to take such a foolproof deal.
That leaves royalties, which bring him about $5 million a year, according to Billboard. “That’s enough to pay his jet fuel bill,” one insider laughed.
Last month, the music trade reported that West’s team tested the waters to sell his catalog for around $135 million, but he didn’t seem to have much interest.
Meanwhile, we’re told he has “a lot of cash by anyone’s standards,” but he also has a “high rate of cash burn.”
West, who has been wearing a cap that suggests he will run for president in 2024, has been spouting anti-Semitic hate.
West bought a $57 million house in Malibu, California, last year and gutted it. It’s in the midst of rebuilding pretty much from scratch. We are told that the project is seriously at risk due to its financial problems. He also has a large number of other houses, but we are told that many of them are mortgaged.
West, of course, has been in money trouble before. Let’s not forget that she revealed in 2016 that she was $54 million in personal debt, which was reportedly due to her many attempts to launch a fashion line, as well as her free-spending style.
What it boils down to, a source says, is that West’s opulent lifestyle is based on the Adidas deal and the rest was gravy. But with the sneaker brand heading for the hills, he’s losing about three-quarters of his net worth, according to Forbes, a big hole to plug.
So sources estimate that while he has more than $100 million in the bank, he probably has enough in the bank to last a few “months.”
“It’s about cash flow and if it’s cut off when can you revive it,” one source said.
A representative for West could not be reached.