NASCAR Driver Kyle Larson Apologizes for N-Word ... 'An Awful Thing to Say'

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3:07 PM PT -- Two major sponsors have just cut ties with Larson ... with McDonald's and Credit One Bank blasting the driver for his actions while terminating their deals with him.

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"We were extremely disappointed and appalled to hear about this incident," McDonald's announced Monday. "The comments made by Kyle Larson are insensitive, offensive and not reflective of our inclusive values and will not be tolerated. McDonald’s is taking immediate action to terminate the relationship with Larson."

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Added Credit One, "Credit One Bank denounces the highly offensive language used by Kyle Larson during Sunday’s iRacing event. In addition to the quick actions taken by NASCAR and Chip Ganassi Racing, Credit One Bank is terminating its sponsorship of Kyle Larson."

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9:26 AM PT -- Larson just issued a video apology -- saying, "I just want to say I'm sorry."

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"Last night I made a mistake and said the word that should never ever be said and there's no excuse for that."

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"I wasn't raised that way and it's just an awful thing to say. I feel very sorry for my family, my friends, my partners, the NASCAR community and especially the African-American community."

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"I understand the damage is probably unrepairable and I own up to that. I just want to let you all know how sorry I am and I hope everybody is staying safe during these crazy times."

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8:05 AM PT -- Larson's team, Chip Ganassi Racing, just suspended the driver without pay while it investigates the situation.

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“We are extremely disappointed by what Kyle said last night during an iRacing Event," the team said in a statement ... calling Larson's comments "offensive and unacceptable."

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"As of this moment we are suspending Kyle without pay while we work through this situation with all appropriate parties.”

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7:25 AM PT -- A rep for NASCAR tells TMZ Sports ... "NASCAR is aware of insensitive language used by a driver during an iRacing event on Sunday, and is currently gathering more information."

Kyle Larson 4/13/20
THINGS GET RACY

NASCAR driver Kyle Larson has big problems -- the 27-year-old dropped an n-bomb during a virtual race on Easter Sunday ... with the hard R and all.

Larson -- who drives the #42 car during the NASCAR Cup Series -- was competing in an iRacing event, streamed live to thousands of people on Twitch.

After crashing during Lap 6, Larson apparently had a difficult time communicating with other drivers and that's when things got bad.

"You can't hear me? Hey, n****," Larson said casually.

WHAT?!?!

The comment was immediately met with shock from other drivers, who commented (vocally) on the live stream,

Anthony Alfredo: “Kyle, you’re talking to everyone, bud.”

Aaron MacEachern: “Yup, we heard that.”

Conor Daly: “Yikes!”

Justin Botelho: “Oh, damn! He did not just say that.”

Yeah, BAD.

By the way, Larson is half Japanese and has talked about how the NASCAR "Driver for Diversity" program helped him get to the big show.

He is the only active NASCAR driver of Japanese descent.

FYI, the race itself was called Monza Madness -- at the famous Autodromo Nazionale Monza in Italy -- and featured top drivers from NASCAR, IndyCar, NHRA and the eSports world.

Originally Published -- 5:45 AM PT

Tracy Morgan Lambo Meets Pedestrian ... Alleged Collision in NYC

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Tracy Morgan April 2020
BIG APPLE DISPUTE

Tracy Morgan's Easter is off to a hopping mad start ... after an alleged run-in between one of his exotic sports cars and an NYC pedestrian.

TMZ obtained this video of Tracy -- next to his red Lamborghini -- and a man yelling at each other near Times Square ... on the corner of 42nd and Broadway. Eyewitnesses tell us Tracy had a green light and started to make a right turn when he nearly hit the dude on foot.

You can hear the guy explain to Tracy where he was walking to and from, while Tracy vehemently disagrees. Seems the debate is about whether he was jaywalking and who had the right of way.

Police drove by, but didn't get involved ... we're told they basically gestured to both men to keep it moving. Tracy checked his Lambo for damage, and the pedestrian walked off, slightly limping.

For what it's worth, they appeared to be nearly 6 feet apart during the dispute. We've reached out to Tracy's reps for comment ... so far, no word back.

Even though NYC's streets are nearly empty during the quarantine ... Tracy's got pretty bad luck in the Big Apple. Last summer, he got into a fender bender on an NYC street in a new Bugatti he'd literally just driven off the lot.

He was ultimately not found at fault in that case.

Be careful out there Trace -- people are WALKING HERE!!! Ah, 'Midnight Cowboy' ... anyone? No??

Kentucky Church Packed for Easter, Despite Nails in Parking Lot ... Cops Watching Closely

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Kentucky State Police were circling the parking lot of a church that's packed for Easter service -- defying state orders -- and issuing warnings, if not citations.

Maryville Baptist Church in Hillview, Kentucky drew what seemed to be nearly a full house Sunday morning. Reporter Sarah Ladd with Louisville's Courier-Journal captured images in the parking lot ... where you could hear the pastor leading the congregation in song.

Shortly before the service began, volunteers were clearing the parking lot of nails, apparently left there by someone who wanted to discourage the service ... which is violating Kentucky's safer-at-home order. Gatherings of more than 10 people are illegal.

So far, the cops aren't shutting down the service or arresting churchgoers. Instead, they're leaving notifications on the cars in the lot ... informing the owners they are potentially spreading COVID-19.

The notifications also say the health department will contact the car owner, and his or her family members, and require them to quarantine for 14 days.

Unclear, if they're issuing tickets, but the notice does warn the churchgoers they may be committing a misdemeanor by violating the state's emergency order.

Kansas Supreme Court Justices Hear Arguments Via Zoom ... Uphold 10 or Less in Church

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6:32 AM PT -- 4/12 - Governor Kelly wins. The Kansas Supreme Court ruled the Legislature lacked the authority to override Kelly's resolution. The Court's decision was based solely on the language of the resolution. The Justices did NOT address the Legislature's claims Gov. Kelly had infringed on religious freedom.

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Bottom line: Easter services -- and all church services during the state's safer-at-home order -- must, legally, have 10 or fewer people.

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Kentucky had a similar ruling, upholding the Governor's plan to ban mass gatherings for church with one exception ... a drive-in Easter service being held in Louisville

The Kansas Supreme Court will decide today whether Kansans can flock to church for Easter, and they're deliberating on webcam ... just like the rest of us.

The surreal scene went down Saturday morning as all 6 state Justices hopped on a Zoom conference from their homes to hear oral arguments in a case that will have major ramifications in the state -- and perhaps in others too.

The case is between Kansas Governor Laura Kelly and the Kansas State Legislature -- the latter overturned Kelly's executive order banning religious gatherings of 10 or more people.

Gov. Kelly didn't take that sitting down -- she sued the state body and now the matter's being discussed by the highest court in the Sunflower State. Gov. Kelly wanted this figured out before Easter, and she'll get it too. A decision is expected later today.

It's just the latest installment in pastors vs. coronavirus. As you know, several church leaders -- including Tony Spell in Baton Rouge -- insist they can and will continue holding services that violate social distancing. Spell told us his parishioners would be happy to die from the virus if it means they can go to church.

Of course, all the other people they could infect outside his church don't get a say in the matter.

Anyway, point is ... a lot of eyes are on Gov. Kelly and the Kansas Supreme Court.

Originally published -- 12:27 PM PT

Lori Loughlin The 'Rowing' Pics for USC Application ... Smoking Gun According to Feds

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The infamous pics Lori Loughlin and Mossimo Giannulli took of their daughters on rowing machines -- allegedly to get them into USC through a side door -- have finally been revealed.

Federal prosecutors dropped the photos Thursday in their response to Lori and Mossimo's motion to dismiss the case. Olivia Jade and her sister, Bella, are seen doing their best rowing on ERG machines. Prosecutors blurred their faces in the pics -- which we've heard about since the college admissions scandal broke more than a year ago -- but the documents make it clear it's them.

According to prosecutors, on Sept. 7, 2016 ... Mossimo sent Rick Singer -- the college admissions scandal mastermind -- an email with Olivia's rowing pic attached. The feds say that email and pic were in response to Singer requesting the pic in an August email, saying ... "It would probably help to get a picture with her on an ERG in workout clothes like a real athlete too."

Bella's rowing photo was attached to an email Mossimo sent to Singer on July 28, 2017, and Lori is cc'd on that email.

Prosecutors have pointed out neither of the Giannulli sisters were really on crew teams ... and the rowing pics were just part of the scheme to get them into USC -- along with checks of $50k to USC's athletic program and $200k to Singer's foundation.

Mossimo and Lori have said the checks were merely donations, and not bribes to get their daughters into the school.

In their response, prosecutors acknowledge they should've turned over Singer's notes earlier, but say it was "simply a mistake," and not a bad faith attempt to sandbag Lori and Mossimo. The feds also say the notes don't exonerate the couple because their alleged criminal intent started long before Singer turned into an informant for the government.

As we reported, Singer's notes included details of his communications with defendants in the college admissions scandal -- including Mossimo and Lori -- and also his complaints that feds were pressuring him to call the payments bribes.

Meghan & Harry 'Archewell' Site Hijacked ... Goes to Ye's 'Gold Digger'

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6:09 AM PT -- The site has now been disabled.

Meghan Markle and Prince Harry's potential website for their new foundation is now owned by an Internet troll, who's using a Kanye West hit to send a pretty nasty message.

The Duke and Duchess of Sussex announced Tuesday they were planning a new nonprofit called Archewell Foundation, but apparently they didn't lock down at least one potential URL for a website. Instead, a cybersquatter scooped up archewellfoundation.com -- but there's nothing charitable about it now.

The anonymous owner linked it to Kanye's "Gold Digger" music video on YouTube. The troll's intent seems pretty clear ... passing judgment on Meghan's intent in marrying Harry.

It's a low blow ... especially considering Harry and Meghan plan to make their foundation a one-stop-shop educational and support site for a variety of charitable groups.

They still have other URL options -- such as a dot org -- so it's not a total lost cause -- but it's a hard lesson for the couple to learn as they venture out on their own without support from the Palace.

The Sussexes will have to step up their media game, especially if they come to Hollywood ... as many expect. You're swimming with sharks now, Harry!!!

Originally Published -- 3:43 PM PT 4/8