Tough Mudder will no longer be held in Finsbury Park following claims the event destroyed land and left locals furious.
The challenge sees fitness fanatics tackle obstacles surrounded by layers of mud and water.
But this year's race, which took place over the weekend, caused outrage among locals who claimed runners churned up huge portions of the park and destroyed a community orchard.
Residents also claimed the event was proof public parts were being essentially privatised by "stealth" and used as money-making schemes.
David Lammy, Labour MP for Tottenham, branded the event a 'disgrace' and said he was 'utterly appalled' by the damage that had been done to the park.
He added: "I have nothing against @Toughmudder but Finsbury Park is an inner city urban park and the damage done is an environmental disgrace. There are serious questions about how and why this licence was granted, enforced and policed."
Organisers of events in London's Haringey parks are required to pay an Environmental Impact Fee, with the money kept separate from other events income and used to address immediate funding priorities identified by the friends' group of the park in which the money was generated.
The fund has seen more than £171,000 invested in community projects in Finsbury Park over the last five years, including £34,000 this year.
Friends of Finsbury Park, a volunteer-led charity that works to create a 'greener, healthier park for all', said the event will have a 'devastating' impact on the biodiversity in the area.
They tweeted: "We have been back on site this morning and will be back again this afternoon assessing the damage from the @ToughMudder two-day event.
"The damage is considerable, covers most of the park and will make lots of the park unusable for a good while. We are devastated.
'We will be formally complaining and will share this publicly."
Many took to social media in anger, with one saying "Tough Mudder SHOULD PAY to RESEED that whole area. Will cost £low hundreds. The grass will be fine in long run but much better to use this as an opportunity to get in valuable wildflowers clearly lacking there."
Cllr Mike Hakata, Deputy Leader of Haringey Council and Cabinet Member for Climate Action, Environment and Transport, said: "I visited Finsbury Park on Saturday night and was upset to see the scale of damage that has been caused to grass areas across the site.
"We have seen considerable rainfall over recent weeks which has saturated the ground and will need repair. This will be rectified as soon as possible, and any cost will be covered by the event organisers.
"Tough Mudder events have taken place successfully for four years now, enabling thousands of people young and old to enjoy the outdoors and improve their health and wellbeing, at the same time as raising significant funds for charitable causes.
"The impact of the event this year has caused several weeks' worth of damage to the park and as a result we have had to rethink our approach. To prevent the risk of this repeating, we have decided that this event will not be held in Finsbury Park going forward.
"We are proud of our green spaces in Haringey and are working together with residents to make sure that our many wonderful parks remain vibrant and welcoming spaces for everyone to enjoy."
A spokesperson for Tough Mudder added: "Tough Mudder prides itself on working in tandem with all its venues, local authorities and key stakeholders and has been in close communication with Haringey Council for the entire process and throughout the event at Finsbury Park.
"Together, we recognise the damage to the park and the impact it has had on the surrounding community. We are working with all relevant stakeholders to restore and repair the damaged areas of the park.
"Tough Mudder empowers people of all abilities to transform their lives through our unconventional experiences.
"Built on the principles of teamwork, courage and personal accomplishment, our events are designed to motivate people of all abilities to improve their physical and mental health, whilst also encouraging charitable fundraising locally across London and the UK.
"We will be using this ethos of togetherness to help restore the park with Haringey Council and the wider community."