Schnatter has stated a few insensitive comments that are against the values of the organization, says Miami Marlins, as it cut ties with Papa John.
Schnatter has been in deep trouble for making a racial statement. However, on being pointed out through news reports, Schnatter has apologized for this slurring statement made by him. Our society is not the place for racism states Schnatter, as he apologizes for his hurtful language.
Earlier, Schnatter was in trouble with a sports league. NFL had immediately distanced itself and ended all relationships with Papa John. They were the official pizza of the league.
NFL had ended their deal with Papa John and sold them to Pizza Hut, the competitor of Papa John. But Schnatter says that the leadership should have resolved issues.
Schnatter had related the poor sales in his company with the NFL leadership. The players should have stood up while the national anthem was being played. This controversy has lowered its sales, he had pointed out.
The company has stated that Schnatter, the founder of Papa John, had resigned from being the chairman of the company, on being targeted for his statement. However, the company also claims that this statement does not reflect his personal values.
The Royals, the Rays, and Jeter Marlins are a few individual teams that have cut their ties with Papa Slam. Each has ended their discount promotions.
Wednesday saw Major League Basketball distance itself from the pizza chain. Yahoo! Sports has suspended the Papa Slam promotion by which that baseball fans get 40 percent off from their offer after a grand slam.
The company shares have fallen down by 6 percent, though it recovered and closed slightly higher.
If a single person has a close tie with his company, it may harm the company image, as evident from the Papa John illustration. Professor Keith Hollingsworth says that marketing strategies should not depend on a particular individual.