Shaq delivers a triple threat to Papa John's, an American pizza company struggling with racism

Papa John's was named first member of the African-American Board of Directors while he is trying to repair the damage caused by the use by his founder of a racist insult.

Basketball Superstar Shaquille O. Neal joined the board of the troubled pizza chain and has invested in nine restaurants in the Atlanta area. The former star of the NBA has also agreed to participate in a marketing campaign.

"The big guy [talking about himself] is in town. I understand everyone's language, including our language [African-Americans]. So I think it's fair to say that the nonsense will not continue, "said Shaq, referring to recent problems.

The problems began in 2017 when founder John Schnatter criticized the NFL leadership and blamed American football protesters, such as Colin Kaepernick, for the racial protests of their slump in pizza sales.

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He also used a racial insult during a media training session. He apologized for that, but the company changed the logo that bore his face. Schnatter remained the largest shareholder of the Kentucky-based company.

O 'Neal said Friday in an interview with CNBC that Schnatter's use of the bond had harmed the brand with African American customers.

President Jeff Smith added that the company still had to overcome a "marketing and image challenge", stressing that the turnaround would not be a "quick fix".

Dad John's will own about 70% of the Atlanta joint venture, the rest going back to O. Neal. It is expected to invest about US $ 840,000 on the expected acquisition costs of $ 2.8 million ($ 4.1 million) for restaurants, Papa John's said. O Neal will get about $ 8.25 million ($ 12 million NZD) over three years for the endorsement deal.

Papa John's shares climbed 6.3% in New York on Friday (Saturday). They had already climbed 18% this year until the close of Thursday (Friday, NZT).

O & # 39; Neal will receive half of the endorsement fee in cash and half in stock over a three year period. The company is still developing its plan to use O 'Neal as part of a marketing campaign that, he hopes, will help drive sales and attract younger customers, said Steve Ritchie, Executive Director.

"We had a difficult year, but it's a step in the right direction to change the perception of who we are," Ritchie said.