Port Adelaide have welcomed the AFL appeals board's findings but maintain the tribunal process needs to be reviewed.
On Monday night, Butters had his challenge to the finding upheld after the AFL appeals board ruled the tribunal had committed an "error of law" through a "miscarriage of justice".
Port Adelaide superstar Butters was fined $1500 by the AFL tribunal last Tuesday for allegedly abusing field umpire Nick Foot during the Power's loss to St Kilda in round five.
Foot told the tribunal Butters asked him "How much are they paying you?'' after awarding the Saints a free kick.
Butters vehemently denied making that comment, but the tribunal sided with the umpire, who reported him at the time of the incident.
Monday night's appeals board hearing barely referenced the original incident, as Port appealed based on an error of law regarding former Essendon midfielder Jason Johnson's conduct as a panel member.
Johnson, a real estate agent, tuned in to the online hearing in his office then briefly disconnected and switched devices to his mobile phone as he drove to an open house inspection.
The Power argued that "was inexplicable and amounted to a miscarriage of justice".
"The board cannot be satisfied that Mr Johnson in those circumstances was paying proper attention to his duties and adjudicating appropriately," lawyer Paul Ehrlich KC said, noting it had to be inferred Johnson was distracted.
Albert Dinelli KC, representing the AFL, had acknowledged it was "regrettable" that Johnson had briefly disconnected from the hearing but rejected the suggestion it amounted to an error of law.
After deliberating for 14 minutes, the panel of Will Houghton (chair), Stephen Jurica and Richard Loveridge agreed with Port, and upheld the appeal.
Houghton said the conduct "constituted a miscarriage of justice" and "it was clearly an error of law that had a material impact on the decision of the tribunal".
The appeals board moved that the original case should be "remitted to a properly constituted tribunal" and heard again.
But the AFL had determined if the appeal was upheld, there would not be a re-hearing, meaning Butters was cleared and his fine wiped.
"While Port Adelaide welcomes the dismissal of this matter, the club maintains its position that the Tribunal process needs to be reviewed," Port said in a statement.
"The club nor the AFL will seek a re-hearing."
Because of the error of law finding, the dispute between Butters and Foot was never addressed in the appeals board hearing.
But the AFL issued a statement stressing its intent to draw a line under the saga, while apologising to all parties for the tribunal issue.
"As was stated in the Appeal Board hearing, the AFL does not seek a re-hearing and as such this is the end of this matter," the AFL said in a statement.
"The AFL apologises for the inconvenience caused to the parties for the error of law that has led to this outcome, in particular Zak Butters, Ollie Wines and Ben Rutten of the Port Adelaide Football Club and AFL umpire Nick Foot.
"The AFL reiterates its strong support for the AFL Tribunal and all of those who make an important contribution to the conduct of the AFL disciplinary system, including former players who lend an important perspective to these matters.
"The AFL also expresses its strong support for umpires at all levels and the vital role they play in our sport.
"The AFL will now reflect on the reasons of the Appeal Board and learnings from tonight's outcome."
