Cronulla Sharks NRL chairman Damian Keogh says no drugs problem despite arrest

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"I've stood down as chairman of the Sharks to try and distance myself from that at this stage".

Keogh, 55, handed in his resignation on Saturday after he was allegedly found at an inner Sydney venue the previous night with a small resealable bag containing what's thought to be cocaine.

The club released a statement saying Keogh had stepped aside from his role so he could address allegations of possession of an illegal substance.

Sharks CEO Lyall Gorman will hold a press conference in Sydney on Saturday at 12.30pm.

Speaking on Triple M Saturday NRL, Triple M and Fox Sports' James Hooper said that there is much to still be resolved about the matter.

"He expressed great remorse to me that he had let me down personally", Gorman said.

The father-of-four reportedly broke the news to his family yesterday.

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Only two years later, the Sharks won the premiership and financial problems were eased, partly due to a generous $1.5million donation by Keogh, according to The Sunday Telegraph.

Keogh's arrest was one of three drug scandals to rock the NRL in less than 48 hours.

The developments come a day after the arrest of Roosters star Shaun Kenny-Dowall for cocaine possession.

Declaring himself "extremely embarrassed and sorry", Kevin Proctor has stood down as co-captain of the Gold Coast Titans following an allegation that he took an illicit drug.

Police allege that CCTV footage shows a man preparing a white powder on his phone, before handing it to a pair of men who consumed it outside a Canberra night spot.

Keogh is also chief executive of movie giant Hoyts.

"I accept that there will be further punishment from my club and the NRL, and I just want to put this all behind me as quickly as possible and prove I can make it up to everyone".

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