Hurricanes board member Troy Bowker has announced he will be selling his part-ownership stake in the franchise - while challenging Prime Minister Jacinda Ardern to say if he should be prosecuted for hate speech.
Bowker came under fire for replying to a social media post from Sir Ian Taylor which showed a Tom Scott cartoon suggesting New Zealand did well in ocean sports because of "our ancestral DNA".
Sir Ian said it could be a wonderful message for "Judith [Collins] and her friends".
Bowker took exception to this, saying it was "another example of European NZers not being proud of their own ancestors".
He accused Sir Ian of "sucking up to the left Māori loving agenda" and asked "what percentage" Māori he was.
This set off a firestorm of controversy, with Hurricanes star TJ Perenara saying the "underlying racism" of Bowker's comments was "insulting".
"The mental, emotional, and cultural safety of our players is crucial and needs to be assured. Our supporters deserve better and should be able to back us without feeling conflicted," he tweeted.
Chair of the National Māori Authority Matthew Tukaki said Bowker should not only apologise but step down from his role, while Speaker of the House Trevor Mallard said he would not attend another Hurricanes game while Bowker was a member of the board.
In a statement posted to Facebook on Saturday night, Bowker said he will be exiting his shareholding - although he claims this decision was made in February.
"For at least six months the Hurricanes board has been working through a capital restructure in preparation for the ending of the current license term on 31 August," he wrote.
"I have now notified the chairman that I intend to accept the offer which has been made for my shares on terms with which I am very happy."
Bowker added he never meant for his exchange with Sir Ian to involve the Hurricanes, instead focusing on the historical achievements of "all our ancestors".
"I wish to make it clear that I stand behind the theme of what I said and my right to express those views in a free, democratic society," he posted.
"I am concerned about the future of our wonderful country where I believe freedom of speech is at risk. I would like to acknowledge the overwhelmingly positive support I've received from hundreds of people who share my concerns, including many from the Māori community."
Bowker finished with a message to the Prime Minister over the Government's planned hate speech law amendment and the difficulty some have had in understanding what kind of comments would be prosecuted after the proposed changes.
"Many people are simply too afraid to speak up out of fear. Living in a society where a culture of fear restricts the freedom of speech is not something that we as a country should accept," he wrote.
"Is the Prime Minister willing to comment on whether my remarks would be considered hate speech, prosecutable under the proposed legislation? If she cannot - we should all be very concerned."