Tasmania's deputy premier, Bryan Green, has denied he punched a man at the AFL grand final on Saturday.
A Tasmanian councillor and president of a local football club, Ian Goninon, says he was left with a bloodied nose after an altercation with Mr Green at the MCG.
Mr Goninon was seated behind the deputy premier, who was attending as part of the Tasmanian government's sponsorship of AFL premiers Hawthorn.
Mr Green admitted he remonstrated "very strongly" with Mr Goninon and said he had twice asked him to stop making derogatory comments about him personally and about the Tasmanian government.
"It was close and personal I admit but I didn't punch him. I didn't hit him. I didn't do anything that would, I believe, hurt him," Mr Green told reporters.
Mr Goninon said he left the ground after the incident, which occurred near fulltime.
He said he'd needed to clean a bloodied nose.
"I didn't hit myself and I didn't throw any punches," Mr Goninon told ABC radio.
He denied provoking Mr Green, saying he didn't know what had sparked the incident, but admitted he was disappointed in how government money was being spent.
"We were having some normal football banter and nothing was directed to him whatsoever," Mr Goninon said.
" ... I'm disappointed with what happened, if that's how Tasmania spend their money sending politicians and staffers to an AFL grand final."
Both men admit they had been drinking since pre-game lunches but deny being intoxicated.
Mr Green, who was charged with drink-driving in 2011, said he'd consumed two beers at lunch and then a mid-strength beverage during each quarter of the match.
Mr Goninon said he'd consumed light beers and a glass of wine at lunch before a drink during each quarter.
The pair both say witnesses can corroborate their version of events and both have sought legal advice.
Mr Green says he is considering defamation action.
"I've never shied away from any argument with anyone and when people are just talking about you in a way that is not correct or is inappropriate then of course I'm going to stick up for myself," he said.
Tasmanian premier Lara Giddings said she was satisfied with Mr Green's version of events and no further action was necessary.
