This week, Schnatter stepped down from his role as chairman of the board of the pizza chain. While downplaying his anthem statements, Schnatter said "Colonel Sanders called blacks n--s, "Forbes reports".
The pizza promotion has been a staple of Rangers baseball since 2011. The Miami Marlins announced Thursday they would also suspended their relationship.
According to Forbes, the call involved a role-playing exercise that was supposed to give Mr Schnatter experience in dealing with hard issues.
A Papa John's spokesperson confirmed to the BBC that it will erase its founder's image from all advertising. The university's president said the school will evaluate the naming arrangement for Papa John's Cardinal Stadium, but noted that the matter involved contractual agreements, according to the Louisville Courier-Journal.
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The pizza chain for some time has offered a 50 percent discount the day after the Rangers score seven or more runs.
In a statement released by Louisville, Kentucky-based Papa John's, Schnatter said Wednesday that the reports attributing use of "inappropriate and hurtful" language to him were true.
Papa John's latest controversy has begun to cost the brand relationships with baseball teams across the majors. In addition to that being suspended, the Rangers will no longer show any Papa John's signage during home games.
In a statement quoted by the Chronicle, the team said, "The Astros are incredibly disappointed with the statements made by Papa John's founder John Schnatter".
The lack of empathy and action in Ritchie's letter just adds to a perception that the company is tone-deaf in terms of race relations, something that first came to light a year ago.
Bendapudi also explained she spoke with Schnatter, who supported the decision to remove the name so it won't be a distraction to the program, according to 93.9 The Ville.