Papa John's founder resigns as chairman after using racial slur

Papa John's restaurant exterior. Papa John's Pizza is the fourth largest take-out and pizza delivery restaurant chain in the United States

But on Wednesday, Mr. Schnatter acknowledged as true a report that he had used the n-word in a conference call in May.

Schnatter is reported to have downplayed the significance of his National Football League remarks previous year on the conference call, and then said that "Colonel Sanders called blacks n--s" without facing any public backlash.

"Regardless of the context, I apologise". Schnatter hired the agency after he criticized NFL players kneeling during the national anthem to protest police brutality against black people previous year The fallout resulted in Schnatter resigning from his role as CEO in December.

According to TMZ, Schnatter also resigned from his position at the University of Louisville Board of Trustees after the NAACP urged him to. Grissom defended Schnatter, saying the comments did not reflect his personal beliefs.

The outspoken chairman of Papa John's International, John Schnatter, is facing another controversy that is battering the shares of the pizza chain he founded.

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A Papa John's spokesman declined to comment on the report but sent an emailed statement that said the company "condemns racism and any insensitive language, no matter the situation or setting". He previously resigned his seat on the board of trustees at the University of Louisville. According to an unidentified source, Schnatter was asked how he planned to "distance himself from racist groups" on the internet.

That may not seem like a huge deal to you or us, but to Schnatter, that's everything - the pizza company is headquartered in Louisville, and Papa John is a MAJOR donor to their athletic programs.

The media company working with Papa John's opted to end its business relationship with the pizza company after the call, according to Forbes.

Schnatter said the actual word on the call, ESPN confirmed.

The rift between Schnatter and Jurich led to Schnatter resigning his seat on the U of L Athletics Association, the athletics governing board. Papa John's later apologized for the "divisive" comments. Sports reported the league was suspending its "Papa Slam" promotion that allowed baseball fans to get 40 percent off their order the day after a grand slam.

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