OUTGOING Sydney Swans chairman Richard Colless has declared the racism controversy between Eddie McGuire and Adam Goodes officially closed.

Colless and McGuire shared the stage at a pre-match function at ANZ Stadium ahead of the first match between the Swans and Collingwood since McGuire's comment on Melbourne radio linking Goodes and the King Kong musical.

The pair traded compliments and niceties before the issue was addressed, when Colless – who ends his two decades in the post of chairman in February next year – said there was no ill feeling between the two club leaders.

Colless went so far as to suggest he had been too vocal in a press conference after McGuire's comment was made, when he said the club was bewildered by the ‘indefensible comments’.

"It was critical that Adam spoke to Eddie," Colless told the function.

"Once that happened, to me, that was the end of the matter.

"I don't think he (McGuire) was too impressed with the press conference that took place afterwards.

"If I had my time again maybe I would've used one or two different words.

"Eddie McGuire doesn't have a racist bone in his body and he's probably done more I think for the betterment of society than most.

"It's a closed issue. What they said to one another is private and the message we conveyed that afternoon to the media was that the Swans have nothing more to say."

McGuire's comments at the time appeared to be at odds with the good work done by the Collingwood president following the racial vilification of Goodes during the round nine game.

Goodes put in one of the most outstanding performances of his stellar career that night before being called an 'ape' by a 13-year-old girl in the crowd late in the game.

"To be perfectly honest I think it hurt me, more than it hurt anyone other than Adam," McGuire said on Saturday night.

"I would like to think people saw what I was really like on that Friday night (after the game).

"Adam had torn us apart and was denied the chance to lead his team off the field as the conquering hero.

"I spoke to Adam and I'll take this to my grave, he said 'but we went through so much together'.

"It was one of the worst moments of my life."

A number of other issues were raised during the function, including the contentious Cost of Living Allowance (COLA) afforded to the Swans and Greater Western Sydney.

Colless reiterated his view that Sydney is a more expensive city to live in than the rest of the country and extra money was needed to attract the best players and coaches.

But the Swans chairman had a new idea regarding the salary cap – that it be dictated by All Australian selections.

"There is an issue linking COLA and Kurt Tippett together," Colless said.

"The reality is we haven't recruited a marquee player since 2002 and that was Barry Hall.

"Tippett wanted to leave Adelaide for reasons I don't understand. I think Adelaide got off unbelievably lightly [over the salary cap penalties for irregularities in Tippett's contract], but that's another issue.

"To hear people say you're getting this free kick and that's why you got Kurt Tippett – we had sufficient space in our cap because we delisted players.

"The proxy should be All Australian selection. We have about half what Collingwood and Hawthorn have.

"Now that will change when (Dan) Hannebery and (Kieren) Jack and (Jarrad) McVeigh become All Australians and no doubt Tippett deals will be non-existent."

James Dampney is a reporter for AFL Media. Twitter: @AFL_JD