Is Kanye The Richest Black Person In America?
Different sources claim Kanye is not the richest black person in America.
On Wednesday, multiple outlets reported that Kanye West is the richest Black person in America, worth as much as $ 6.6 billion. His sneaker brand, Yeezy—as well as Yeezy Gap, which has yet to sell one stitch of clothing—have a combined value of as much as $ 4.7 billion.
The publication mentioned, without going into full detail, an additional $ 1.7 billion in assets. It’s not true, based on our calculations. Forbes estimates he’s worth less than a third of that, or $ 1.8 billion. That’s a big jump from last May when Forbes first pegged his net worth to be $ 1.3 billion, but nowhere near as much as the purported $ 6.6 billion. Yeezy Gap has brought in no revenue, let alone any profits.
Who knows if the line will be popular? Maybe another hip-hop star will create the next trendy sneaker in a year or two, and Yeezy will be old news.
As for Yeezy sneakers, they’re selling crazy well. The company’s revenue grew 30% last year. And its most recent limited drop, the 450 in Cloud White, sold out in under a minute. Analysts with who we spoke agree there’s growth left in the business, and if that occurs, his net worth will continue to climb.
Still the crown jewel of his fortune, sales of West’s sneaker brand, which has a ten-year-long production deal with Adidas, climbed to $ 1.7 billion last year, up from $ 1.3 billion in 2019.
As a result, West earned $ 191 million in royalties last year. It’s impressive growth. While UBS predicts the brand will reach over $ 3 billion in sales by 2026, and valued it accordingly, we went with 2020 numbers: The operating income of Yeezy, which is 100% owned by West, was $ 214 million in 2020. With a 9x multiple and 20% private company discount, Forbes calculates that the Yeezy business with Adidas is worth $ 1.5 billion, about $ 250 million more than it was a year ago.
Thanks to the millions he’s made from Yeezy and his music, West has accumulated a nice-size pile of cash, as well as homes and toys. He owns more than $ 100 million in real estate—including multiple ranches in Wyoming and homes in the Los According to a balance sheet sent over by his team, there’s also $ 9.3 million worth of artwork, $ 7.6 million worth of jewelry, $ 5 million worth of vehicles, $ 3.4 million worth of furniture and $ 1 million worth of livestock. Along the way, he has also racked up a significant amount of debt: $ 56 million.