Coach Lone Star Dietz could have named the team himself and it wouldn't change any of the modern facts about this issue.
There are many words that were used in the past that were acceptable then that aren't now. You don't need to be very creative to think of them.
Perhaps the fact that this one has stayed around for so long is what makes this confusing to some. I think that maybe it says more about how disenfranchised Native Americans are than anything else.
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