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Published 07:27 30 Jun 2014 BST
Updated 12:14 12 Nov 2014 GMT
It appears to show Carney urinating into his own mouth at a urinal but the player's agent says he was set up.
"It’s a set-up, like when people stand in front of the Leaning Tower of Pisa,” David Riolo told radio station 2UE
“Todd’s paid a very, very heavy price for a photo that he didn’t want out there or upload himself. It was supposed to be kept between mates," Riolo said.
Cronulla acted quickly to dismiss the player and the Sydney Morning Herald suggest that Carney had committed two other offences that breached the code of the club so this latest incident may have been the straw that broke the camel's back.
"The Cronulla Shark Football Club has today after careful consideration and lengthy deliberation, including discussions with senior NRL management, made a decision to terminate Todd Carney's NRL playing contract effective immediately," read the statement issued by club chief executive Steve Noyce.
"When Todd was first signed to the Sharks he was made well aware of his responsibilities both on and off the field, to himself, the club and to the game in general, however the photograph that appeared last night on social media does not meet the values and standards the club is looking to uphold and take into the future.
"As with any difficult decision, whilst you cant change the past, it is important to put measures in place that can deliver positive outcomes both in the present and into the future.
"The club and the NRL will be committed to working with Todd, his family and his management in implementing appropriate counselling and support, with the start of this process to begin tonight."
Carney, and Australian international, has been sacked before, with Sydney dismissing him for breaking a club alcohol ban in 2011.
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