England footballer John Terry called Anton Ferdinand a racist obscenity in response to taunts about his alleged affair with a team-mate's ex-girlfriend, a court heard on Monday.
Terry is accused of a racially aggravated public order offence during a Premier League match on October 23 last year, which was broadcast to millions of people.
Appearing at Westminster Magistrates' Court on Monday, Terry sat in the dock wearing a light grey suit, white shirt and pink tie.
The court heard that Terry swore and racially abused Ferdinand as the pair exchanged insults.
Opening the prosecution on Monday, Duncan Penny said: "The Crown alleges that the words he used demonstrated hostility based on Mr Ferdinand's membership or presumed membership of a racial group."
The court heard that Terry maintains he was only sarcastically repeating words that Ferdinand wrongly thought he had used.
Mr Penny said: "The Crown alleges that the defendant, most probably in response to physical gestures being made by Mr Ferdinand which the defendant understood to refer to the well-publicised allegation of an extra-marital affair with a team-mate's wife, shouted at Mr Ferdinand."
He went on: "The Crown's case is that the words were abusive and insulting in a straightforward sense...and they were uttered by the defendant in response to goading by Mr Ferdinand on the issue of his extra-marital affair, rather than by way of exaggerated and instant querying of a perceived false allegation."
Terry was allowed out of the dock into the well of the court to view footage of the alleged insult.