As part of an initiation, one student - understood to be aged 16 - stripped to her underwear, fishnet stockings, a dog collar and chains around her wrists while holding up a sign saying "toot 4 strip" on busy Fenton St.
Another student was told to run through a Pak 'n Save supermarket in a bikini.
Stephen was sacked by the $20,000-a-year private school on Friday.
He has been coaching both boys and girls as young as 12 since 1998 and has worked in schools, clubs and representative teams for Auckland Football Federation. He also coached junior teams at Metro Football Club.
Despite the stripping prank, Stephen is likely to escape further scrutiny - the sport's governing bodies at that level both said they had no licence to investigate.
Auckland Football Federation said there was a code of conduct for coaches and players but no nationwide register.
"So there's nothing he can be banned from, it doesn't affect us," said spokesman Daniel Markham.
The Secondary School Sports Council, which helped organise the tournament, said it had no oversight.
All school employees have to be vetted by police before they can work with children. St Cuthbert's said Stephen had a clean vetting certificate.
In 2010 he coached a girls' football team at another elite Auckland school, Baradene College, where he was well regarded, said principal Sandy Pasley.
After last week's initiation, the girls were turned away from the tournament and not allowed back at school during the week.
The school's trust board will determine how they will be disciplined, saying it may involve both some form of restorative justice and service to the Rotorua community.
It is understood that some of the girls involved have been bullied badly online by their peers. A relative of the girl who stripped said she was "in a very fragile position".
St Cuthbert's principal Lynda Reid strongly denied that initiations were a part of the college's culture. "They are not sanctioned in any way. These actions are not what we expect of our girls."
