Also being renamed is John H. Schnatter Center for Free Enterprise at the university's business college.
During the call, he reportedly said "Colonel Sanders called blacks n--" and never faced backlash. Following the phone call, the agency ended its relationship with Papa John's. Schnatter also stepped down as chairman of the pizza chain's board of directors late Wednesday night.
All that was left, it seemed, was addressing the elephant at 2800 S. Floyd St., where Schnatter's old company graced the name of Louisville's renovated football stadium.
The University of Louisville announced that the school's football stadium will no longer carry the Papa John's name.
Papa John's said on Friday founder and former chief executive John Schnatter would no longer be in any of the advertising or marketing materials associated with the brand.
The Mariners had a deal with the chain in which if the team scored five runs, a Papa John's pizza was half-off the next day.
Schnatter used the offensive term while undergoing training on how to avoid future PR disasters with media agency Laundry Service, after he past year controversially blamed NFL national anthem protests for his company's sagging pizza sales. The promotion was suspended after CEO John Schnatter resigned in the wake of racial remarks.
Schnatter, who was a longtime visible presence in Papa John's commercial campaigns, admitted to making a racial slur during a company conference call in May.
Papa John's stock is up almost 3% Friday on the news.
A person inside the company with knowledge of the decision said they were unaware of plans to change the chain's name. That prompted the company's stock to recover some of the losses it suffered after the report, though the shares were down slightly Friday morning.
Schnatter also allegedly stated that, in his home state of in, "people used to drag African-Americans from trucks until they died", reportedly intending for the sentiment to convey his opposition to racism. "In response to the reprehensible remarks made by Papa John's founder and owner, the New York Yankees are suspending their relationship with the company", the Major League Baseball team said on Twitter.
"Regardless of the context, I apologize", the statement said.
Bendapui said at a news conference Friday that "there's too much hurt around" the Papa John's name right now.