Sacked South Sydney coach Jason Taylor has threatened legal action against the club following the termination of his contract with a year to run.
Taylor insists he did nothing to breach his contract during the Rabbitohs' Sad Sunday festivities at Forresters Hotel in Surry Hills, which resulted in departing second rower David Fa'alogo punching him to the ground.
Closed-circuit TV footage showed Taylor karate-chopping South Sydney players at the Rabbitohs' Chinese-themed end-of-season session, which the former Rabbitohs coach described as "lightweight" and "pretend" play.
Taylor is set to be replaced by former Cronulla and Penrith premiership winning mentor John Lang.
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In a statement issued to Fairfax Media today, Taylor said he believed he had been treated unfairly and vowed to defend his honour.
"I refer to the much publicised incident involving me and David Fa'alogo at Forrester's Hotel on 6 September 2009," Taylor said.
"My attendance at Forrester's was expressly approved by the Club. I was never told I should not attend and no time restrictions were ever put on my attendance.
"I drank responsibly at Forrester's. I was not intoxicated. I have three independent witness statements from Forrester's bar and security staff that confirm this.
"Along with players (including David Fa'alogo), I engaged in pretend, light-weight, kung-fu play. David was a willing participant in the play encounter that directly preceded the incident.
"My actions at Forrester's (sic) and since have not brought the Club into disrepute and I did not breach my contract of employment or any code of conduct.
"I deeply regret the impact that this has brought to my family, the players, the members and the Club.
"I believe that I have been treated unfairly by the Club, I will be taking the matter further and doing all I can to defend my honour and clear my good name."
Fa'alogo is also expected to be sacked, although he has only two months remaining on his contract before joining Huddersfield in the English Super League in a lucrative four-year deal.
The Rabbitohs will make an official announcement at 4pm, with Lang - the club's director of football - expected to accept a two-year offer to return to the coaching ranks next season.
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