Papa John's Founder Schnatter Resigns as Chairman After Using Racial Slur

Papa John's founder and CEO John Schnatter attends a meeting in Louisville Ky. Schnatter who appears on the chain's commercials and pizza boxes will leave the CEO role in January 2018 weeks after

REPORT: Papa John's Founder Allegedly Used N-Word On Conference Call Months After Complaining About NFL Players

University of Louisville Board of Trustee member John Schnatter listens to the discussion regarding employment of athletic director Tom Jurich, Wednesday, Oct. 18, 2017.

Now, Schnatter might have another public relations crisis to deal with.

In Schnatter's IN hometown, Moore said that threats of litigation aside, he hoped the $800,000 donation would not be rescinded, because it was helping so many "inner-city kids" who would be using the building not only as their school gymnasium but as an after-school "safe place".

During the call, sources say, Schnatter attempted to downplay his National Football League comments by noting that "Colonel Sanders [of KFC] called blacks n--s" and never faced backlash for it.

Papa John's issued a statement earlier on Wednesday, and didn't deny that Schnatter had made the comments. These memories are said to have been brought up in an effort to demonstrate how un-racist Schnatter is, but it obviously offended multiple people who were on the call.

In a statement released to Forbes Wednesday afternoon, Schnatter confirmed the allegations against him.

Papa John's sent a statement to Forbes shortly after publication that did not dispute its reporting about the conference call, but said the company "condemns racism and any insensitive language, no matter the situation or setting ..."

Forbes reported that the owner of the PR firm working with Schnatter terminated its contract with Papa John's after it learned about the call.

This article was originally published by The New York Post. Papa John's later apologized for the "divisive" comments. He is the public face of the company and its largest shareholder, controlling 29%, and appears in its ads, including one that rolled out as recently as April. "That definitely was not our intention", the company said on Twitter.

Mr Schnatter also resigned from the University of Louisville board of trustees on Wednesday following the incident.

Schnatter reportedly told those on the phone that Colonel Sanders - the founder of KFC - used to called black people the n-word and he didn't get public backlash.

The rift between Schnatter and Jurich led to Schnatter resigning his seat on the U of L Athletics Association, the athletics governing board.

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