South Sydney coach Jason Taylor has broken his silence on his punch-up with backrower David Fa'alogo, claiming he has done nothing wrong and is desperate to continue coaching the club.

Taylor was backed by Souths patriarch George Piggins who said the coach does not deserve to lose his job. Other Rabbitohs greats, however, believe if the coach has lost the respect of his players, his time is up.

Taylor has until Tuesday to give the club's board reason why he shouldn't be sacked after being issued with a formal notification on Thursday that he had breached his contract over the incident.

The Souths coach indulged in an eight-hour long drinking session with the team before allegedly slapping Fa'alogo and other players.

Taylor on Friday revisited the pub where the incident happened with his lawyer to review CCTV footage - it allegedly shows the coach slapping Fa'alogo before the Rabbitohs backrower knocks him down the stairs with a left jab and follows him down with a cocked right fist.

"I've done nothing wrong," Taylor told the Nine network.

"I want to keep coaching the team and I love the club. Simple as that."

Piggins said Taylor had made a huge error of judgment in joining the team for their post-season celebrations at the Forresters Hotel in Surry Hills.

Piggins, who held the clipboard at the Rabbitohs from 1986 to 1990, said Taylor had done a good job since joining the club as first grade coach in 2007 and the club would be making a mistake if it axed him over the incident.

"I don't think he deserves the sack," Piggins said.

"He hasn't done a bad job at Souths. He beat Manly and St George Illawarra (in recent weeks) - that's not a bad effort. They're unlucky they're not in the eight this year.

"He's put in rather well since he's been there as a coach."

However, Piggins said Taylor should never have put himself in such a precarious position after electing to join the players for their end-of-season drinks.

"He's made a mistake in judgment that's for sure," Piggins said.

"I never went out with the players and I don't know if too many other coaches do it."

Legendary Souths lock Ron Coote said Taylor should only lose his job if he has lost the respect of the rest of the players over the incident.

There was speculation this season that the coach was out of favour with his squad but he survived any push to sack him thanks to the support of co-owner Russell Crowe.

"I'm not saying they should sack Jason Taylor, but if he has lost the respect of the players it's no good having him there because he's not going to perform next year," Coote said.

"You are playing for the coach and that's half the battle.

"Some coaches are more successful than others because they've got the confidence and respect of their players. Some don't."

Fa'alogo fell out with Taylor after receiving a dressing-down from the coach in 2007 for king-hitting Sydney Roosters' Braith Anasta. For his part, the Rabbitohs backrower has been told to front the board on Friday and faces the prospect of having the rest of his contract torn up.

Although Fa'alogo has been released to take up a deal with English Super League club Huddersfield, he is contracted to the Rabbitohs until the end of next month and he could lose as much as $40,000 if he is sacked by the club. Coote agreed with Piggins that Taylor should never have been on the drink with his players.

"I certainly don't think the coach should be out with his players on Mad Monday," Coote said.

"He's only a young bloke, Jason Taylor, and I'm sure when I played with the Roosters Jack Gibson wouldn't go out on the drink with everyone.

"Jack was the benchmark as far as coaches go."

Former backrower Bob McCarthy said he had made the mistake of drinking with the players when he had been coach and he wouldn't do it again.

"It's their Mad Monday - not the coach's," McCarthy said.

"It's all changed now and they go on too long these days. But I don't know who's in the right and who's in the wrong."

Former Souths captain John Sattler said the incident showed why all clubs should dispense with post-season celebrations.

"They should scrub Mad Monday because it's the biggest imbecilic thing of all time," Sattler said.

"What do they have to celebrate?

"We used to go and have a drink on a Monday after the game and the coach used to drop in and say hello and see how they're going and then go."