MELBOURNE will not be able to pay 100 per cent of the salary cap in the foreseeable future unless revenue-sharing measures are introduced, according to CEO Peter Jackson. 

As industry insiders told AFL.com.au that equalisation discussions had reached a critical point, Jackson said the outcome of those talks would dictate whether all clubs would be able to compete on a level playing field with regard to player payments. 

The Demons will not pay 100 per cent of the salary cap in 2014 but aim to do so as soon as possible, recognising that attracting and retaining players depends on meeting that goal. 

Jackson is confident Melbourne will at least break even in 2014 - and perhaps make a modest profit if things go well - after significant off-field restructuring and a lift in sponsorship and membership sales. 

But with only two home games against big-drawing clubs - Geelong and Collingwood - he knows that the Demons' fixture will make it difficult to increase the club's revenue, even if its on-field performance lifts as expected. 

That means Melbourne's timetable for being able to pay 100 per cent of the salary cap is uncertain. 

"[It] basically depends on what we do on the field this year and how we go with membership. To be honest, I can't see a scenario of growing profits in the next two or three years without some sort of equalisation [policies] to pay the TPP," Jackson told AFL.com.au.

He said paying the full amount of the salary cap was essential for clubs to keep pace with the rest of the competition. 

"The way free agency is, whether [it's that] you can't attract a player in or you can't keep a player, that is not a level playing field," Jackson said.

Melbourne still expects payments to players to increase by $500,000 as part of a budgeted $1 million increase in football department investment this year. 

The Demons have lost Jared Rivers, Brent Moloney and Colin Sylvia to free agency in recent seasons and James Frawley has held off re-signing until he has a clearer indication of where the club is heading. 

Jackson is confident the club's balance sheet is strong and that the focus on football will strengthen its revenue-earning potential over time. He said the aim this season is for the club to be competitive for longer, with the percentage a good signal as to whether or not that aim is achieved. 

Jackson has been relatively quiet during the equalisation debate with his hands full in restoring Melbourne to a position of financial stability. 

He said controlling a club's cost base was an important foundation for future growth. 

"[I] don't think you can go on expecting you are going to keep generating more revenue. [You] must look at what you have got and hopefully generate more revenue afterwards," Jackson said. 

He has no problem with the AFL's objective to maximise attendances, TV ratings and revenues through the fixture but says its important to recognise it remains a huge factor in the ability of clubs to increase their revenue. 

For that reason, Jackson argues that the conversation on revenue sharing should focus on identifying the total revenue earned from each match ? gate, membership (discounted entry), catering, reserved seating – and how that might be shared among clubs, given each club plays a part in maximising the overall revenue. 

He suggested revenue earned through merchandising, fundraising and sponsorship should not be shared. 

Some equalisation measures already mooted include taxes on football department spending, gate levies, taxes on revenue as well as centralised arrangements with the AFL official beverage supplier.

AFL CEOs are expecting to hear more detail when they meet in Adelaide on March 4.