April 14 (UPI) -- Chip Ganassi Racing fired driver Kyle Larson Tuesday after he used a racial slur during an iRacing video game event on Easter Sunday.
Larson was competing in the victual race when he lost communication with his spotter on his headset. He said the slur while performing a microphone check. A brief moment of silence passed before fellow drivers alerted Larson that he was on a live microphone.
"After much consideration, Chip Ganassi Racing has determined that it will end its relationship with driver Kyle Larson," Chip Ganassi Racing said. "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."
The driver of the No. 42 Chevrolet Camaro lost major sponsorships from McDonald's, Clover Commerce and Credit One Bank before he was dropped by his racing team.
On Monday, NASCAR gave Larson an indefinite suspension. Chip Ganassi Racing previously suspended the Cup Series driver without pay. He also was suspended indefinitely from iRacing. NASCAR ordered Larson to complete a sensitivity training course before he can be reinstated.
Larson apologized for the incident Monday in a video posted to his social media accounts.
"I understand the damage is probably unrepairable and I own up to that," Larson said. "But I just want to let you all know how sorry I am and I hope everybody is staying safe during these crazy times."
NASCAR drivers have been competing in iRacing events during the sport's hiatus from live events due to the coronavirus pandemic.
Drivers who compete in iRacing use a computer connected to the Internet, a monitor, steering wheel, driver's seat and pedals to compete against other drivers in virtual races while fans who subscribe to the events watch.
Larson, 27, was in the final year of his contract with Chip Ganassi Racing. He is in his sixth year of competing in NASCAR's Cup Series. He was in seventh place in the Cup Series standings before racing was suspended due to the pandemic.