A Sunderland shareholder left the club's board after enraging fans by claiming people from the North East don't understand business.
Charlie Methven, an Eton-educated PR executive, reportedly made the incendiary remarks at a fans' meeting in November.
Tensions boiled over in a meeting between the Sunderland hierarchy and the Fan Engagement Committee at the Stadium of Light, according to The Times.
It centred around the reported £10million investment by American-backed FPP Sunderland group.
Methven, who became executive director of the club after Stewart Donald's takeover in 2018, was unhappy at being questioned over the deal he had secured.
According to the report, the minutes of the meeting suggest that he claimed people in the south would no question it because they understood business better.
He reportedly said there were 'less entrepreneurs' in the North East.
Methven has expressed regret in a statement, saying: 'This meeting was at the end of my three-month notice period at Sunderland.
'It was a private meeting at which all matters of the club were discussed.
'I was repeatedly pressed on the negative implications of a £10 million investment I'd secured for the club. Exasperated, I reacted intemperately and one of those present subsequently took me to task.
'I apologised to him because the comparison I made does not accurately reflect my real views. It was an off-the-cuff riposte which I regret.'
A statement from the club read: 'It goes without saying that any such views are not representative of our chairman and Sunderland AFC as a whole.
'It is clear from comments the chairman has made publicly that he is hugely appreciative of and truly grateful for the tremendous support given to the club by the Sunderland fans, especially in recent challenging times.'