Affectionate coach, how to handle

[Back In The Saddle]

Freshman girls game tonight. Two good teams, and well coached. After a PC call, one of the coaches wants to talk. I go over and he steps right next to me and puts an arm around my waist, real cozy-like and says what he's got to say (a legitmate concern, politely expressed). I have never had a coach do this before, and didn't know what to do, so I put my arm around him as well (out of pure habit, I'm an affectionate guy ) Entire exchange lasted maybe 10 seconds.

Afterward, however, I got thinking, "What must that have looked like to the other coach?" What should I have done? Pulling away would probably come across to him and his team as a needlessly aggressive. Engaging him in return surely would seem too "cozy" to the other coach and team. Would it have been best to allow him to put his arm on me, but not have returned the gesture? Ideas?