However I assume you meant he was using it in the more offensive slang usage for african-american. Chances are he might not even know it has the connotation as it's pretty specific to America.
I'm all for keeping the discourse civil, but the term was clearly used in a nonracial fashion. Please don't destroy perfectly useful words in an attempt to act offended on someone else's behalf.
(2004 retelling) http://americanfolklore.net/folklore/2010/07/brer_rabbit_mee...
(1886 version) http://en.wikisource.org/wiki/Uncle_Remus:_His_Songs_and_His...
If you don't know what a word means, the first step is to check the dictionary! "tar baby: a difficult problem that is only aggravated by attempts to solve it".
That being said, I'm clearly in the wrong, sorry for having been a dick. I know the phrase tarbaby, I'd just never heard of a "tarbaby team" before and was thrown off.
If you do, however, you might get new insight into the term "tar baby" and why it has that definition.