Robby Melhem, once a major sponsor of the Manly Sea Eagles, has been refused bail after being charged over a major drug bust.

Sources have told Fairfax Media that during his sponsorship of Manly, which finished several years ago, Mr Melhem had allegedly been supplying cocaine and prostitutes to some players as well as making cash payments to some in breach of salary cap regulations. On several occasions at private parties hosted by Mr Melhem he allegedly provided cocaine to some players.

Surveillance officers intercepted this box containing an alleged 2kg of cocaine.

Just after 9am on Thursday, the former mobile phone entrepreneur and property developer was nabbed after he allegedly sold cocaine to an undercover police officer at Sydney Olympic Park. By day's end detectives from the Middle Eastern Organised Crime Squad (MEOCS) had seized 22kg of cocaine from an apartment Mr Melhem's syndicate rented for $830 per week in Refinery Drive, Pyrmont. Earlier in the week, as part of the same investigation, police also allegedly seized 3kg of cocaine and 5kg of ephedrine.

During other searches, police seized more than $100,000 cash, two motor vehicles, methylamphetamine, laptops, mobile phones, electronic devices and clothing.