"The statements made on our earnings call were describing the factors that impact our business and we sincerely apologize to anyone that thought they were divisive. Simply stated, racism has no place in our society", Schnatter's statement said.
University of Louisville Board of Trustee member John Schnatter listens to the discussion regarding employment of athletic director Tom Jurich, Wednesday, Oct. 18, 2017.
J. David Grissom, the chairman of the university board, said he had spoken to Schnatter on Wednesday.
John Schnatter, founder & Pres. of a chain of Papa John's pizza restaurants, with employees at one of his outlets, making a surprise quality check on a row of pizzas laid out on counter at restaurant in 1997.
Schnatter reportedly was asked how he would separate himself from racist groups online and responded by "downplaying the significance of his National Football League statement", according to Forbes.
According to Forbes, the 56-year-old also spoke about his early life in IN on the conference call, and claimed people used to drag African-Americans from trucks until they died. "We've got to own up and take the hit for our missteps and refocus on the constant pursuit of better that is the DNA of our brand".
The 56-year-old had already created news in the sports world following his comments about NFL player's protests during the national anthem.
Papa John's stock had fallen 4.8 percent by market close Wednesday.
Card Chronicle reported Thursday that the naming rights to the stadium are not with Papa John's the company, rather with Schnatter himself.
Casey Wasserman, the chief executive of Wasserman, the talent management company that owns Laundry Service, declined to comment.
Papa John's founder John Schnatter arrives at the American Music Awards in Los Angeles in 2011.
Forbes reported that the incident took place on a call arranged between Papa John's executives and Laundry Service as a role-playing exercise for Schnatter to prevent future public-relations missteps. He resigned as CEO a few months later.
Papa John's was the longtime exclusive pizza sponsor of the NFL, but ended its partnership with the league earlier this year under new CEO Steve Ritchie.
A request for comment from Papa John's was not immediately returned to Fox News.