Cronulla Sharks chairman Damian Keogh had conveyed deep regret over his arrest for drug possession, the NRL club's chief executive Lyall Gorman said on Saturday.
"He expressed great remorse to me that he had let me down personally," Gorman told reporters.
Keogh has stepped down from his role at the NRL premiers after Cronulla confirmed Keogh was arrested in Bourke Street, Woolloomooloo on Friday night.
A small resealable bag containing a quantity of white powder believed to be cocaine was allegedly found during the search.
Keogh was issued with a field court attendance notice for possessing a prohibited drug.
He is due to face Downing Centre Local Court on June 30.
Gorman said he had spoken to Keogh several times on Saturday.
Cronulla Sharks Club CEO Lyall Gorman speaks during a press conference in Sydney on May 6, 2017. Source: AAP
"He's very distressed about potential outcomes and the impact on the game, the club and his family," Gorman said.
"There's a whole lot of challenging things to be worked on through here.
"Clearly these things aren't great for the club or the game but let's be clear these are allegations."
The NRL said it was aware of the developments which come a day after the arrest of Roosters star Shaun Kenny-Dowall for cocaine possession.
"We are aware of an incident which involves the Sharks chairman," NRL chief executive Todd Greenberg said.
"We are awaiting further details from the Sharks about what has occurred."
Keogh, a former Australian basketball star who made three Olympic Games teams, took over at the Sharks during the supplements scandal in 2013.
He was voted onto the board after the infamous ASADA press conference and helped rebuild the struggling club from wooden spooners to premiership winners last season.
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