{"id":118238,"date":"2021-03-24T01:09:12","date_gmt":"2021-03-24T01:09:12","guid":{"rendered":"https:\/\/precoinnews.com\/?p=118238"},"modified":"2021-03-24T01:09:12","modified_gmt":"2021-03-24T01:09:12","slug":"fact-check-estimate-of-kanye-wests-worth-making-him-richest-black-man-needs-context","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/fact-check-estimate-of-kanye-wests-worth-making-him-richest-black-man-needs-context\/","title":{"rendered":"Fact check: Estimate of Kanye West’s worth, making him richest Black man, needs context"},"content":{"rendered":"

The claim: Kanye West\u2019s net worth of $6.6 billion makes him the richest Black person in U.S. history<\/h2>\n

Kanye West is a rapper, fashion designer and would-be candidate for U.S. president. Now, recent reports suggest he is the richest Black person in American history.<\/p>\n

That claim stems from a Bloomberg report that cites a private bank document it reviewed that values West\u2019s partnership with Adidas and Gap for the Yeezy brand sneakers and apparel between $3.2 billion and $4.7 billion. That, combined with more than $1.7\u00a0billion in other assets \u2014\u00a0cash, investments and West\u2019s music catalog \u2014 total up to about $6.6 billion, Bloomberg reported. And that number generated headlines about West\u2019s worth across the Internet.<\/p>\n

On Facebook, a viral post proclaimed that \u201cKanye West is now the richest black man in American history.\u201d The account that made the claim did not respond to a request for comment.<\/p>\n

But Forbes, known for its rosters of the rich, disputes the valuation on the grounds that the document Bloomberg cited is based on \u201ctheoretical future expectations\u201d about revenue West\u2019s deal with Gap will generate.<\/p>\n

Forbes also ran with the $6.6 billion estimate before pulling back the story. The publication estimates that West is worth about $1.8 billion.<\/p>\n

Vista Equity founder Robert F. Smith is the richest Black American, according to Forbes.<\/p>\n

Representatives for West did not respond to a request for comment.<\/p>\n

Kanye\u2019s portfolio<\/h2>\n

Even without factoring in future revenues, both Forbes’ and Bloomberg\u2019s reporting rates West as a billionaire.<\/p>\n

Bloomberg reported West holding $122 million in cash and stock, a $110.5 million music catalog and $1.7 billion in \u201cother assets\u201d that include an investment in Kim Kardashian\u2019s underwear label, citing \u201can unaudited balance sheet of West finances provided by his lawyer.\u201d<\/p>\n

Forbes rated West as the second-highest paid celebrity\u00a0last year and estimates his net worth at\u00a0$1.8 billion. The biggest piece of West\u2019s portfolio \u2014 about $1.5 billion \u2014\u00a0is his shoe deal with Adidas for the Yeezy brand, highly sought-after sneakers that can sell for thousands of dollars on secondary markets. West owns the brand, but Adidas pays him an annual royalty.<\/p>\n

In 2020, he was the second-biggest celebrity earner behind Kylie Jenner, according to Forbes.<\/p>\n

<\/p>\n

Rapper Kanye West's net worth is $1.3 billion.  (Photo: Jean-Baptiste Lacroix, AFP via Getty Images)<\/span><\/p>\n

Gap deal<\/h2>\n

In the summer of 2020, West signed a 10-year deal with mall-fashion retailer Gap Inc. for the Yeezy Gap brand, according to The New York Times.\u00a0The deal includes an option to renew in the fifth year, the Times reported, by which Gap hopes the brand will generate $1 billion in sales a year.<\/p>\n

The brand was not expected to launch until 2021, though, so it has not yet generated revenue.<\/p>\n

Bloomberg\u2019s March 17 report cites a private document from UBS Group AG that values the sneaker and apparel deals at $3.2 billion to $4.7 billion, with the Gap partnership accounting for about $970 million.<\/p>\n

Forbes wrote that it reviewed the same document and that it \u201cmade a number of assumptions based on projected future earnings.\u201d<\/p>\n

\u201cBank documents like this are well-known for painting best-possible scenario future valuations,\u201d according to Forbes. It says its approach \u201cis based on that old-fashioned idea of current revenues \u2014 not theoretical future expectations.\u201d<\/p>\n

<\/p>\n

Rapper Kanye West introduces Yeezy Gap partnership on Friday, June 26. (Photo: Getty Images)<\/span><\/p>\n

Our rating: Missing context<\/h2>\n

The claim that Kanye West is worth $6.6 billion, making him the richest Black person in U.S. history, is MISSING CONTEXT. Bloomberg based the worth of West\u2019s assets on a private bank document that Forbes said projects future earnings rather than representing current worth. Forbes ranks Veritas Equity founder Robert Smith as the richest Black person in America.<\/p>\n

Our fact-check sources:<\/h2>\n