Schnatter came under fire this week after a Forbes report that he used the N-word during a media training conference call in May. The slur usage came during a call that involved, among others, a marketing agency that was helping "prepare him for an interview to try to fix his public image" in the wake of the NFL's national anthem controversy.
Earlier this week, Schnatter used the n-word in a conference call orchestrated by a PR company created to prevent future PR screw-ups.
Schnatter, Founder, Chairman & CEO of Papa John's International, Inc. rings the NASDAQ Opening Bell at NASDAQ MarketSite on January 31, 2014 in New York City.
When the news of the call broke this week, shares in the pizza chain plummeted by 5.9 per cent, wiping $96.2million off its market value, and Schnatter announced he would resign as chairman.
It is Schnatter himself and not Papa John's who has the deal with the university for the naming rights until 2040, according to ESPN.
Schnatter - always been the face of Papa John's brand - is still the company's largest shareholder and remains on its board, but top executives plan on removing his image from marketing materials following the latest controversy.
The face of Papa John's is being sliced out of its ads. The company got a taste of that previous year, when Schnatter stepped down as CEO after blaming disappointing pizza sales on the outcry surrounding football players kneeling during the national anthem. He said the comment was taken out of context but that he nevertheless felt "sick" about the incident. Major League Baseball axed its "Papa Slam" promotion earlier this week; the University of Louisville announced it's working to rename Papa John's Cardinal Stadium.
Schnatter's name will also be removed from the university's Center for Free Enterprise at its business school, university spokesman John Karman confirmed to The Post. Netflix said Jonathan Friedland used the word in a meeting of public relations staff about sensitive words.
Starbucks also recently fired a store employee for insensitivity, and earlier this year closed thousands of US stores for an afternoon to give employees anti-racial bias training after an uproar over two black men being arrested while waiting for a meeting.
Papa John's is the world's third-largest pizza chain, with more than 350 outlets in the United Kingdom and 4,900 restaurants worldwide. For the first three months of this year, Papa John's said a key sales figure fell 5.3 percent in North America.
Papa John's stock is up almost 3% Friday on the news.