Kanye West could be just months away from bankruptcy, said Page Six.
As the rapper has been laid off by companies and criticized by industry figures, sources say he has a lot of cash hoarded, but also huge expenses, and must find a way to turn the tide. If you don’t, you may get into trouble quickly.
According to sources familiar with his finances, the 45-year-old West has five sources of income, four of which have been completely shut down by his anti-Semitic outburst and support for white supremacists. damaged or severely damaged.
In recent years, West is said to be making money from big Adidas deals, Gap deals, music catalogs, new music and concert sales.
Adidas, the true engine of his vast wealth, had already said earlier this week that it would stop paying him immediately after ending a massive Yeezy sneaker deal with him.
According to insiders, his threats against Jews and the incident in which he leaked porn to Adidas executives “means they can play hard-line,” so it would be difficult to oppose the decision. muscle says
Gap, who ended his two-year contract with him in September, owes him some money for the YEEZYxGAP products he sold from the end of his contract until Tuesday, sources said.
As far as concerts go, it’s the easiest money a star like West can make and should be a reliable source of quick cash. It was scheduled. It was canceled. Insiders add that venues are unlikely to book him in the midst of the scandal.
As for new music, West is said to have an album in cans, but no deal to distribute it at the moment. . Insiders say the record will probably still offer something of a lifeline, but it’s unlikely he’ll make as much money as he did with his previous albums.
“He’s won multiple Grammy Awards and has such a large following that his albums instantly went platinum,” the source said, noting that no one would be happy with such a deal they can’t lose. I can’t believe you accept it.
According to Billboard, that leaves him in royalties that bring him about $5 million a year.
Last month, the music industry reported that West’s team had tested the waters to sell his catalog for around $135 million, but it didn’t seem to attract strong interest.
On the other hand, while he is said to have “more cash than anyone else”, he also has a “high cash burn rate.”
Last year, West bought a house in Malibu, California for $57 million and burned it down. In effect, it is being rebuilt from scratch. Due to his financial problems, the project is said to be in serious danger. He has many other homes, many of which are said to be mortgaged.
Of course, West has had financial troubles before. Remember, he revealed in 2016 that he had $54 million in personal debt.
In short, West’s lavish lifestyle was based on a deal with Adidas and the rest was gravy, according to insiders. We’re losing about three quarters.
As such, sources speculate that even if he had over $100 million in the bank, he probably has enough money for “a few months.”
“It’s all about cash flow and thrash if he can bring it back,” a source said.
West’s rep could not be reached.