I also agree. I don't see why the guy needs totally to sever his association with the club. His past service should be honoured and he should be encouraged to contribute at an appropriate level.
The wider problem, with all "voluntary" organisations, is that people who put in stalwart service at a low level tend to be rewarded with promotion to higher and higher positons , for which they are not always fitted. I don't know the answer.
BTW if I'm wrong and the offending statement wasn't his own, but was agreed by the committee, then they all need to resign.