John Schnatter makes $1 million donation to Simmons College
Papa John’s founder John Schnatter and Simmons College of Kentucky announced a $1 million gift from the Ex-CEO on Wednesday afternoon.
Louisville Courier Journal
Papa John’s founder John Schnatter has spent the last year battling perceptions that he’s a racist whose insensitive remarks cast the global pizza chain into crisis.
On Wednesday, more than a year after he was forced out at his company, Schnatter took a big step toward rehabilitating his image. He donated $1 million to Simmons College of Kentucky, a historically black college.
Schnatter said his success in business has “been a blessing from God. I’m humbled to give back. It’s something my parents and grandparents taught me.”
During an afternoon announcement at the college’s administration building at Fourth and Kentucky streets, Schnatter spoke briefly, sticking to prepared remarks as he praised the work of Simmons and the National Baptist Convention of America, which may also receive a slice of the cash.
He left the room and the administration building without speaking with reporters. It was clear that both Schnatter and school leaders were anticipating questions about why Simmons would accept Schnatter’s gift and whether they expected a backlash.
Mark Lynn, the college’s board of trustees chairman, and the Rev. Kevin Cosby, Simmons’ president, stressed that Schnatter’s actions, not his words, should be the emphasis now.
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During the briefing, Cosby described Schnatter’s donation as a boost for black ownership, self-respect and validation. “He steps out with us,” Cosby said to cheers from a group of ministers, college employees and guests.
But the Rev. Gerome Sutton, a minister who led protests outside Papa John’s offices last summer and called for a boycott of the chain, said he was surprised at Schnatter’s “gall” and also disappointed that Simmons would accept the gift.
“It doesn’t take a rocket scientist to figure out what’s going on. (Schnatter) is trying to pay off the black community with 30 pieces of silver,” said Sutton, a Simmons graduate and former member of its board of trustees.
Schnatter’s public appearance was one of the first in more than a year, before scandal and controversy rocked him and the company he built from the back of a Jeffersonville, Indiana, tavern. He was forced from the Papa John’s chairmanship and evicted from the company’s East Louisville headquarters after reports in July 2018 that he’d used a racial slur during a media training session.
Schnatter insisted later in court that the comments were mischaracterized and meant to criticize offensive language, not to insult anyone. But the damage was catastrophic, and it came just months after the company founder drew fire after criticizing the NFL’s handling of minority player protests during the national anthem.
In midsummer 2018, the company’s stock tanked, and executives ordered Schnatter’s image and photos removed from store walls and pizza boxes. Schnatter fought back, suing the company and hiring a public relations team to launch a website to tell his side of the story — seen by many as his way to rebuild his reputation.
Background: Schnatter to give ‘significant financial gift’ to historically black college
Papa John’s, meanwhile, has struggled to rebound from slumping sales, even with fresh marketing and “purpose driven” initiatives. A new charitable foundation, for instance, donated $500,000 to Bennett College in Greensboro, North Carolina, to help the historically black women’s college overcome accreditation problems.
Schnatter has since left the board, dropped two lawsuits against the company and trimmed his stake to nearly 17%. He’s grossed more than $190 million from stock sales since May.
Popular NBA Hall of Famer Shaquille O’Neal was named to the board and is expected to lead a new marketing campaign, one that is seen as a crucial play to refurbish the brand and win back minority customers who were offended by Schnatter’s remarks.
After months of silence, Schnatter issued a statement last week when Papa John’s CEO Steve Ritchie was let go. The company “was very poorly run” under Ritchie’s leadership, he said.
In Schnatter’s hometown of Jeffersonville, several people have complained the former pizza baron has been unfairly vilified.
“In my opinion, he got a raw deal,” said Harry Wilder, 79, who first met Schnatter while coaching Little League. Wilder also knew Schnatter’s parents and siblings.
They are good people, Wilder said, adding that “Johnny’s relationship with black kids was definitely not racial.”
Still, it may be difficult to convince some people in Louisville and beyond that Schnatter’s gift isn’t about trying to rewrite his history.
See also: Meet the new Papa John’s CEO, a marketing expert behind Arby’s
Sutton said that while he has “the utmost respect for Kevin Cosby … he’s done more with that school than anybody could … but Kevin knows he should not take that money. It ought to be sent back through Zip Express.”
College officials haven’t decided how they will spend the money, which Schnatter said will come from the John H. Schnatter Foundation. He emphasized during his remarks that he’s focusing on helping to build better communities.
Lynn, an eye doctor who underwrote the University of Louisville’s soccer stadium and recently bought the naming rights to the new pro soccer facility in Butchertown, was asked afterward about a potential backlash over accepting Schnatter’s donation. Other universities removed the pizza baron’s name and canceled sponsorship deals, but Simmons went in the opposite direction. Why?
Lynn said the board reviewed a transcript of Schnatter’s remarks from last year, acknowledging that there were discussions about how the gift might be perceived, but he quickly pivoted, saying of Schnatter: “Actions are key. … He’s a Louisville guy. He’s who we are.”
Lynn mentioned that Schnatter and Cosby were flying to Louisiana together soon and that there may be more announcements coming.
Cosby seemed irritated by the questions about Simmons’ decision.
“The black community is in crisis,” Cosby said moments before leaving the parking lot. “It’s going to take resources to support black colleges and universities … that’s what this is about. Any other issue is subterfuge.”
Earlier: John Schnatter sells thousands in Papa John’s stock
Grace Schneider: 502-582-4082; gschneider@courierjournal.com; Twitter: @gesinfk. Support strong local journalism by subscribing today: courier-journal.com/graces.
