LOS ANGELES • Until Sunday, Kyle Larson was known as a talented and popular Nascar driver who was quick with a joke.

He also was the crowning success of the sport's Drive for Diversity programme, which seeks to give opportunities to minorities and women in the almost all-white, all-male sport.

Now Larson has been suspended indefinitely by Nascar and dismissed by his team after using a racial slur during a livestream of a virtual auto race.

"After much consideration, Chip Ganassi Racing has determined that it will end its relationship with driver Kyle Larson," the team said in a statement on Tuesday night after tearing up his reported US$10 million a year (S$14.2 million) contract.

"As we said before, the comments that Kyle made were both offensive and unacceptable."

Dozens of professional drivers, who have been kept off real tracks by the coronavirus, competed in a simulated race on Sunday and bantered with one another as fans watched and listened.

During the race, Larson at one point said: "You can't hear me?", before uttering the word n*****.

Several other drivers reacted, saying: "Kyle, you're talking to everyone, bud" and "Yikes."

While he apologised on Monday, admitting that he said a word "that should never, ever be said" and "there's no excuse for that", his future in the sport is in jeopardy.

At 27, Larson has been driving on the top Nascar circuit since 2014 with six wins in the No. 42 blue Chevrolet Camaro and last year, he placed sixth in the standings, his highest finish.

While known for speaking his mind, his outburst has come as a surprise, given his background.

Larson's father is white, while his mother is Japanese-American and his maternal grandparents were put in an internment camp during World War II.

He had been expected to be a much sought-after free agent in the next off-season, with talk of him moving to Hendrick, perhaps to replace the team's retiring seven-time champion Jimmie Johnson.

Larson, who has also competed in the 24 Hours of Daytona and was part of the winning team in 2015, has also spoken of giving the Indy 500 a shot in the future.

But after being fired for using a racial slur, the odds could be long for a lucrative move elsewhere, or even a return to Nascar any time soon. He is also facing a major financial blow, with sponsors McDonald's, Credit One Bank and Clover all dropping him.

NYTIMES