The retired 39-year-old Japanese player, who was unpopular with many US fans for his rough manners, was arrested on the spot in the bar in the western metropolis of Osaka at 5:30 am (2030 GMT), police said.
Irabu admitted that he had drunk around 20 jugs of beer and was infuriated when the machine did not read his credit card, a police official told AFP by telephone.
The former pitcher grabbed the bar's 22-year-old manager by the collar, pushed him against the wall and yanked his hair, the official said. He also threw ashtrays and beer bottles, prompting staff to call police.
‘When he got angry it was really scary, since he's pretty strong. Even if we tried, we wouldn't have been able to stop him,’ a witness told the TBS television network.
Television footage showed glass shards littered across the small bar's floor along with upturned chairs and half-smashed bottles.
With much hype, Irabu joined the Major Leagues with the Yankees in 1997 but got off to a shaky start both on and off the field. He became notorious for bad manners including spitting.
Yankee owner George Steinbrenner once famously called Irabu a ‘fat toad’ for failing to cover first base during a play on spring training and in 1999 traded him off to the Montreal Expos.
Irabu went 34-35 with a 5.15 ERA in six seasons in the Majors, which also included a year with the Texas Rangers. He retired in 2004 after a season back in Japan with the Hanshin Tigers. He lives in California.