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.
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.
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?”
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.
“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
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.
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.
“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.”
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.
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