Yesterday a police spokeswoman said the investigation had been concluded, the parties were notified of the outcome and "that there will be nothing further to add from police".
Mr Watson had previously denied the allegations and said yesterday there was "simply no truth" to them.
"As I have stated, the meeting on the 17th February became heated through my frustration at Sir Owen's behaviour. He needed to be told that his conduct was inappropriate and disrespectful to sponsors and players and fell short of the standards required at the Warriors. I do not regret bringing that to his attention," Mr Watson said.
Warriors chairman Bill Wavish made a written complaint days after the February meeting alleging Sir Owen had made disparaging comments about Warriors sponsors in a speech and asked a female member of his staff to purchase sex toys for players' wives and girlfriends.
Sir Owen has denied the allegations. An attempt to contact Sir Owen last night was unsuccessful.