Lynch, the general manager of Velocity Sports, said he was "surprised and disappointed the club had refused to detail in full the reasons for Fevola's dismissal".
In a meeting on Sunday between Lions coach Michael Voss and football chief Dean Warren, Fevola offered to play the entire 2011 season in the Lions reserves and accept whatever behavioral clauses the club wished to impose on him.
However, the club decided to terminate the troubled forward who has been battling depression, a gambling addiction, and alcohol abuse.
In a Brisbane Lions press release, the club said: "The grounds for termination were that Brendan had engaged in serious or wilful misconduct through persistent breaches of his obligations as a player to the club."
Lynch said Fevola was shattered by the decision because all he wanted to do was play football.
"Brendan accepts that he has let his club and his teammates down but is committed to making amends and has always felt that the first step in making things right was his commitment to an extensive rehabilitation program to combat his battle with depression," Lynch said in a media release that immediately followed the Lions' on Sunday night.
"He has stayed 51 days in a voluntary rehabilitation clinic and had reached the stage where he felt the next step was to return to football.
"He was fully prepared to return to the club under whatever conditions the club chose to impose."
Lynch said Fevola would now stay in the rehabilitation clinic while he weighed up his options.
"Our number one priority now is to ensure Brendan continues his treatment and returns to good health," Lynch said.
The Brisbane Lions terminated his contract Sunday night after the board met that afternoon.
The Lions said they had taken into account "the views of the club’s administration and football departments, as well as the need to protect and uphold the culture and reputation of the club".
"The club has therefore lost confidence in his ability to meet his obligations as a player due to these persistent breaches. The timing of this decision was based on medical advice," the press release said.
The club said Fevola was informed of the decision Sunday evening and it would provide financial support to him, "to enable him to continue to receive the necessary assistance with his financial situation and prepare him for his future life".
The Brisbane Lions will hold a formal media conference on Monday afternoon.