The Professional Footballers' Association chairman has admitted he is ashamed at the decision to choose comedian Reginald D Hunter as the evening's entertainment
The comedian, who is no stranger to controversy, repeatedly used the "n-word" in his set at the PFA Awards dinner last night, as well as joking about Liverpool striker Luis Suarez, who was banned for eight games in December 2011 for racially abusing Manchester United's Patrice Evra.
Racism has been a hot topic in English football in recent years, with the likes of Suarez, Evra, John Terry, Anton Ferdinand, Ashley Cole and Rio Ferdinand all being involving in rows over racial abuse, and Carlisle believes that the PFA were wrong to allow a comedian like Hunter to perform at the award ceremony.
"I'm embarrassed about what we put on stage in the name of entertainment," he told Talksport.
"This isn't lambasting Reginald D Hunter - that is his job, that's his repertoire. When you see a comedian in a comedy club, you know they are going to push issues and ethics right to the extreme because that's what they do, but last night wasn't a comedy club.
"We are the PFA and for the past however many years we have stood and fought vehemently in the name of certain issues and I thought his repertoire last night took a really facetious angle and undermined everything we purport to stand for.
"I'm embarrassed and I apologise unreservedly to any who were offended, and those who weren't, because I think it was inappropriate - the wrong place, the wrong time.
"We made a gross error of judgement."
Despite Carlisle's comments on Hunter and his choice of comedy, PFA chief executive Gordon Taylor dismissed criticism of the booking of the controversial comedian and admitted that it may have been difficult for him as an outsider.
"I think there were a few raised eyebrows over the the comedian, but that is the sort of thing you can't control," he said.
"He is a professional comedian. It's a difficult subject in football and with him not being fully aware of how emotive it has been in football, that was probably difficult for him."
Meanwhile, the chairman of anti-racism organisation Kick It Out, Lord Ouseley, has demanded an explanation from the PFA as to why Hunter was booked.
"It sounds to me that the PFA needs to answer questions about how they booked this person and why they booked this person," he told The Telegraph.
"I'm surprised there wasn't a mass walkout. It almost begs the question, 'Why does Kick It Out bother?'"