After watching five first round picks walk from the club at the end of last year, Matthews said he would have played hard-ball if he had been involved with the Lions at the time.
And in an effort to stop the leaking of players from northern states, Matthews has also called on the AFL to deliver a 'development state tax' to players earning under a certain amount of money.
The Lions' 'Go Home Five' – Jared Polec, Patrick Karnezis, Billy Longer, Sam Docherty and Elliot Yeo – all called to be traded to their home state at the end of 2013, leaving the Lions with just second round picks as trade compensation.
Matthews was not on the board of directors at that stage, as he is now, but said he would have made an example of them.
"You can just stop them going and put them in the pre-season draft," he told AFL.com.au.
"I'm prepared to say if I'd been in a position of power at the Lions last trade period, I don't know whether I would have just allowed those five players to go to the club of their choice.
"I might have just said 'we can't allow that to happen, and if you want to go in the pre-season draft, fine, but we're not going to let you go to the club of your choice after you've been two years up here'.
"I think we should have played harder ball."
Statistics show the four northern state clubs are still most at risk of losing players to homesickness, with 96 percent of drafted players coming from outside Queensland and New South Wales.
The Lions have been particularly hammered in recent years, with figures gathered by advocacy group The Lion's Roar showing 10 of their past 19 first round draft picks left for homesickness.
The average departing from Victorian, South Australian and Western Australian clubs for the same reason, is two, says the group.
At the moment the Sydney Swans, Gold Coast and GWS all have access to money outside the salary cap to help retain their players.
League's new player payments scheme
Aside from levelling up the salary cap of all 18 clubs, Matthews has a solution to help the northern markets retain their players.
"I've thought for a long time, the four northern state clubs should all have the same salary cap, exactly the same salary cap, but players playing in those four clubs, maybe up to a salary of $400,000 … you get a 10 percent development state payment from the AFL, direct from the AFL to the player," he said.
"The salary cap the four clubs have got to distribute is exactly the same. That's my solution."
One small advantage Matthews says the northern states must retain, is the academies set-up by each club.
At the weekend Collingwood president Eddie McGuire was reported as saying those academies further diluted the talent pool, with the northern states getting first access to players from their own backyard.
Matthews said it was a minimal advantage, but essential to grow the game.
"We can say to a 13 year-old, 'if you're good enough to play AFL, we'll get first option on your services, so stick with us'.
"Prior to that, the (NRL team Brisbane) Broncos could go to that 13 year-old and say 'come to our development squad and you can play for us'.
"We're hoping more of the teenagers will choose to play our sport.
"Yes, the ones in our area, we get first choice on them, but only under the same basis as the father-son rule, so you get a little bonus but not a massive one.
"You get first option, but the bidding system means you'll pay about what he's worth."
Twitter: @AFL_mikewhiting
Aside from levelling up the salary cap of all 18 clubs, Matthews has a solution to help the northern markets retain their players.
"I've thought for a long time, the four northern state clubs should all have the same salary cap, exactly the same salary cap, but players playing in those four clubs, maybe up to a salary of $400,000 … you get a 10 percent development state payment from the AFL, direct from the AFL to the player," he said.
"The salary cap the four clubs have got to distribute is exactly the same. That's my solution."
One small advantage Matthews says the northern states must retain, is the academies set-up by each club.
At the weekend Collingwood president Eddie McGuire was reported as saying those academies further diluted the talent pool, with the northern states getting first access to players from their own backyard.
Matthews said it was a minimal advantage, but essential to grow the game.
"We can say to a 13 year-old, 'if you're good enough to play AFL, we'll get first option on your services, so stick with us'.
"Prior to that, the (NRL team Brisbane) Broncos could go to that 13 year-old and say 'come to our development squad and you can play for us'.
"We're hoping more of the teenagers will choose to play our sport.
"Yes, the ones in our area, we get first choice on them, but only under the same basis as the father-son rule, so you get a little bonus but not a massive one.
"You get first option, but the bidding system means you'll pay about what he's worth."
Twitter: @AFL_mikewhiting
