NASCAR's Larson Fired After Sponsors Walk

As sponsor after sponsor dropped Kyle Larson after he used a racial slur during a live-streamed virtual race, his NASCAR team owner was backed into a corner.

Chip Ganassi could let McDonald's and Credit One Bank and Chevrolet pull their funding and bankrupt his team or he could cut ties with the driver he had plucked from sprint car racing and groomed into an elite stock car driver.

INDIANAPOLIS, IN - MAY 27: Team owner Chip Ganassi looks on as drivers perpare on Carb Day ahead of the 100th running of the Indianapolis 500 at Indianapolis Motorspeedway on May 27, 2016 in Indianapolis, Indiana. (Photo by Chris Graythen/Getty Images)

It was essentially out of Ganassi's hands.

He fired the 27-year-old Larson on Tuesday in what he described as "an emotional call" — the only move possible to stabilize his organization.

"I told Kyle he can come back from this; he can even come back from this with our team," Ganassi told The Associated Press. "But there really wasn't any choice."

Larson's stunning downfall took less than 48 hours, unusual in its details and coming with sports everywhere basically shutdown during the coronavirus pandemic. The most coveted upcoming free agent in NASCAR lost almost every sponsor he had in what could ultimately be an eight-figure blunder.

Larson loses his 2020 salary plus the massive payday expected from his next contract. If he eventually lands with another team, it will surely be at a far discounted rate than the value he had built since moving full-time to NASCAR in 2013.

AVONDALE, ARIZONA - MARCH 07: Kyle Larson, driver of the #42 McDonald's Chevrolet, stands on the grid during qualifying for the NASCAR Cup Series FanShield 500 at Phoenix Raceway on March 07, 2020 in Avondale, Arizona. (Photo by Christian Petersen/Getty Images)

The unraveling began Sunday night when Larson appeared to lose communication on his headset with his spotter while competing in one of the iRacing virtual events that have grown in popularity during the sports hiatus.

During a check of his microphone, he asked his spotter, "You can't hear me?" That was followed by the N-word. The slur was directed at his spotter, who is white.

He was suspended without pay by Ganassi Monday, then suspended indefinitely by NASCAR and Larson, who is half Japanese, was ordered to complete sensitivity training, but primary sponsors McDonald's and Credit One Bank pulled their support within hours. Chevrolet suspended its relationship with Larson, and all but one commercial partner indicated they were walking away.

Without funding on the No. 42 Chevrolet as long as Larson was in the car, Ganassi had to act. Ross Chastain, under contract as a development driver for Ganassi, will likely replace Larson whenever racing resumes.

AVONDALE, ARIZONA - MARCH 08: Kyle Larson, driver of the #42 McDonald's Chevrolet, leads a pack of cars during the NASCAR Cup Series FanShield 500 at Phoenix Raceway on March 08, 2020 in Avondale, Arizona. (Photo by Chris Graythen/Getty Images)

"After much consideration, Chip Ganassi Racing has determined that it will end its relationship with driver Kyle Larson," Ganassi said in a statement. "As we said before, the comments that Kyle made were both offensive and unacceptable especially given the values of our organization. As we continued to evaluate the situation with all the relevant parties, it became obvious that this was the only appropriate course of action to take."

Larson's famed sprint car career could also be in jeopardy: Kyle Larson Racing fields a Chevrolet in the World of Outlaws Series that is sponsored in part by Lucas Oil, which also ended its partnership with Larson.

Larson also late last year added a midget car to his team and drove it to seven wins in eight races to close 2019, then opened 2020 with a victory at the prestigious Chili Bowl in his 13th try.

Larson had been prepping to test free agency for the first time in his short career and Ganassi was expected to find himself in a bidding war for his franchise NASCAR driver.

LAS VEGAS, NEVADA - FEBRUARY 23: Kyle Larson, driver of the #42 Credit One Bank Chevrolet, drives during the NASCAR Cup Series Pennzoil 400 at Las Vegas Motor Speedway on February 23, 2020 in Las Vegas, Nevada. (Photo by Jonathan Ferrey/Getty Images)

Larson was thought to be deciding between Ganassi or a move to Tony Stewart's NASCAR team. He also might have been a long-shot candidate to replace seven-time NASCAR champion Jimmie Johnson at Hendrick Motorsports, although Rick Hendrick isn't as generous in allowing his drivers to compete in other series and giving up sprint cars was a deal-breaker for Larson.

But his career imploded when his slur went viral in part because viewers can follow the virtual races on the gaming app Twitch and eavesdrop on the drivers' typical lighthearted banter. Larson apologized in a video posted on his social media accounts.

"I made a mistake, said the word that should never, ever be said," Larson said. "There is no excuse for that. I wasn't raised that way. It is just an awful thing to say. I feel very sorry for my family, my friends, my partners, the NASCAR community and especially the African-American community.

"I understand the damage is probably unrepairable and I own up to that."

LAS VEGAS, NEVADA - FEBRUARY 21: Kyle Larson, driver of the #42 Credit One Bank Chevrolet, stands by his car during practice for NASCAR Cup Series Penzoil 400 presented by Jiffy Lube at Las Vegas Motor Speedway on February 21, 2020 in Las Vegas, Nevada. (Photo by Matt Sullivan/Getty Images)

He reached out to many sponsors and friends to apologize. Brent Powell, president of Plan B Sales and Marketing, was the only sponsor to remain behind Larson. He said the driver called him personally to "express his regret about what transpired."

"We know he is an awesome young man that made a mistake and we are going to stand behind him 100% and help any way we can," Powell said.

Larson, whose grandparents spent time in an internment camp in California during World War II, climbed from short-track racing into NASCAR through its "Drive for Diversity" program. He is the only driver of Japanese descent to win a major NASCAR race.

© 2020 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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