Bill Walton Drops Derogatory Term For Little People Twice Live On Air

Bill Walton may be the king of out-of-the-box analysis, but he crossed the line while calling a college hoops game on Thursday ... dropping a derogatory word for little people -- twice.

The Hall of Famer and broadcaster used the m-word when calling the Arizona State vs. USC matchup ... when he was attempting to show praise for the Pac-12 Tournament's in-game host.

"He does not need a little chair because he is a giant in a world full of shriveling m*****s," Walton said during halftime.

Walton then turned to his broadcast partner, Dave Pasch, and cracked a joke ... saying, "Speaking of shriveling m*****s, what is your name again?"

Pasch responded by asking, "What is wrong with you?" He then did his best to move on from the awkward interaction to talk about the game -- but Walton interrupted.

"I'm guilty of having fun in Las Vegas, fun with a purpose," the 6'11" former center said ... before finally getting back to talking about the contest.

Pasch is heard chuckling as Walton goes through his analysis ... and fires off a zinger of his own as the focus gets back to the game.

"I don't know what you consumed at halftime."

If you're unfamiliar, the m-word has been deemed a derogatory slur by the Little People of America, which has urged people to stop using the term.

Dallas Cowboys owner Jerry Jones found himself in hot water as well recently ... after using the term on the first day of his team's training camp last year.

The LPA fired off a response to Jones at the time ... calling on the NFL legend to apologize. He later issued a statement saying he was sorry.

As for the tourney matchup -- ASU beat USC, 77-72.