He explained how he had been reading safety messages since 6.30 that morning, and one stated how no more than "two riders abreast" were recommended in the circuit north of Turangi.
"And when these two gorgeous girls stood up at the back to celebrate the attire of the tournament, I just said, 'Oh, there's two of them' and 'They're two abreast' and 'That makes four'. It was very, very poor, and I apologise for that."
He had made the "potato head" remark as a quip about another contestant's home of Pukekohe.
"What happened later was there was a lady who won this prize, she was from Pukekohe and had this wonderful brown or purple hair ... Because of the Pukekohe connection I thought 'potato' and 'potato head' ... so again, I'm not excusing it and I am apologising.
"I just didn't get away with it. It was the wrong crowd ... A lot of people came up afterwards and said it was a brilliant job done but obviously there was a lot that didn't think that and they're the ones that I'm really upset with myself over and the ones I do apologise to."
Asked if he had been invited back next year, Mr Steele said, "Certainly not", before adding: "I haven't been asked not to come back next year so there is always [hope]."
Mr Steele, who this year won the Business Person of the Year title at the Great Lake Taupo Business Awards, is known for mentoring and coaching high-profile New Zealanders, including actor Oscar Kightley and All Black assistant coach Steve Hansen.
Henry, the former All Black coach, was unaware of the weekend incident but said: "All I can say is that in my experience, David Steele is an outstanding person."
Blackadder, the Crusaders coach, described him as "a good guy" and "a man of integrity".
And King said: "He's not a malicious person, he's not a horrible person, he's one of the nicest guys I know, and he has stood by me through all of my ups and downs."
Last year, King was caught up in controversy with Mr Steele when his agent was revealed to have sought a $50,000 severance payment from New Zealand Pork, just months before King turned on his former employer to expose what he called "callous" and "evil" pig-farming conditions.
But he said he was surprised Mr Steele had got into trouble and that he had called someone a potato head.
"That doesn't sound like the man I know - that's totally out of character and it would have been meant as a 100 per cent joke.
"There would have been one person there that thought it was the funniest thing on the day, and another person who thought it was the most disgusting thing they'd ever heard in their lives. I know who I'd want to hang out with - the dude who thought it was funny.
"I would more expect it from someone like me. I'm an idiot ... Quite often you fall on your arse and you offend someone.
"All I know is that he's a beautiful family man whom I would take anywhere."
Contacted by the Herald yesterday, Mr Steele said: "I'd prefer not to comment."