JASON TAYLOR'S future as South Sydney coach hangs in the balance after he slapped David Fa'alogo on two separate occasions before being felled by the Kiwi second-rower during the Rabbitohs ''Sad Sunday'' festivities in Surry Hills.

Taylor jokingly slapped the majority of his playing squad in the face during the Rabbitohs' end of season drinks at the Forresters Hotel on Sunday. But while most of the players accepted his actions in jest, Fa'alogo took offence and punched Taylor in the head, according to independent witnesses.

He was put in a taxi by players, many of who were in fancy dress for the occasion.

Hotel staff noted that Taylor was ''approaching intoxication'' at one point and suggested he drink water before ordering his next alcoholic beverage. Taylor complied with the request. However, witnesses claimed that the former halfback continued ''mucking around and slapping everyone in the face''.

A wrestle ensued after the first occasion he slapped Fa'alogo and the pair had to be separated. A short time afterwards, Taylor slapped Fa'alogo again and the former New Zealand international retaliated with a punch to the jaw that left Taylor ''groggy''.

It's understood that the witness accounts are corroborated by the CCTV footage and clearly shows Taylor slapping Fa'alogo and the retaliatory punch.

The Herald has also learned that utility Shaune Corrigan passed out after locking himself in an upstairs toilet, while prop Garret Crossman was reprimanded for attempting to climb out a hotel window.

Test back-rower Michael Crocker was roundly praised for defusing several of the potentially volatile situations.

However, the main focus of the club's investigation will centre on the incident involving Fa'alogo and Taylor.

The Rabbitohs coach, under contract until the end of next season, is thought to be in serious danger of losing his job, while the club may refuse to pay England-bound Fa'alogo for the final two months of his contract.

It is the first time that an NRL coach has been reported to have slapped a player since then-Dragons coach Nathan Brown struck Trent Barrett on the sideline at WIN Stadium in 2003. Coincidentally, Brown now coaches Huddersfield - the Super League club Fa'alogo plans to join next year after being granted an early release from the final year of his Rabbitohs' contract.

Souths boss Shane Richardson and chairman Nicholas Pappas yesterday visited Forresters Hotel to view the CCTV footage.

Richardson declined to comment on the incident when contacted later but said the club would conduct a thorough investigation.

Taylor and Fa'alogo are expected to be interviewed today. ''We don't take this incident lightly, and an investigation is under way to get to the bottom of what happened,'' Richardson said. ''We have a strict code of conduct, and we expect every person employed by the club to stick to that code of conduct.

''We have a great record off the field, and we will take decisive action once we know the full facts of what happened. Officials from the club will continue the investigations today, and we will make our determinations from that point on.''

Taylor, who was put in a taxi and taken home after being punched by Fa'alogo, is understood to be comfortable with the way the investigation is proceeding. It is unclear whether he intends to pursue charges against Fa'alogo for assault, which could jeopardise the forward's four-year deal with Huddersfield. Fa'alogo is understood to have already obtained his British work visa.

Fa'alogo's manager, Gavin Orr, said yesterday he was waiting to hear from Souths about the incident but was confident the 28-year-old forward would be cleared of any wrongdoing.

The incident comes less than two weeks after Souths co-owner Russell Crowe warned of the damage of off-field incidents to the code. Crowe also used the occasion to publicly support Taylor.

In an unrelated move, the Rabbitohs yesterday announced Kurt Wrigley as Taylor's coaching assistant for next season - a position he has filled at Cronulla and St George Illawarra.