Demetriou is spending the week in Queensland promoting the game, talking with both AFL clubs, and ultimately attending Friday night's Lions-Collingwood game at the Gabba.
Despite a string of financial losses that date back to 2008 – including a $2.5 million loss in the past financial year - the AFL boss believes the Lions are coming out of their off-field woes.
"I think there's some real upside," Demetriou said.
"It's a very difficult market, the Queensland market, particularly with what's happened here financially (with regard to the floods).
"They've got a very strong competitor in the (NRL club Brisbane) Broncos who are a wonderful club, but the Lions are bouncing back."
Demetriou said the playing group showed potential and thought the Lions had done a "wonderful" job in the off-field rebuild.
The Lions have signed major sponsors Vero and National Storage in the past 12 months.
Demetriou is meeting with the Suns on Tuesday and will meet with the Lions later in the week to discuss their progress and any assistance they might require.
"The AFL's got to do more to support them and help them," he said.
"We've said consistently from day one, we want two strong franchises in Queensland.
"The AFL's there to help the Lions, there to help the Suns, there to help any club that needs support but I'm pretty optimistic about the Lions going forward.
"It's not always about finances, it's about resources, it's about people, it's about what we can do to help develop the game further, help promote the game."
Speaking at Metricon Stadium, Demetriou said he was delighted with the Suns' performance this season.
"They're coming along nicely, they've got a terrific group of players, (an) excellent culture at this club for a very young club," he said.
"We're pleased with the progress of the Suns, really pleased and particularly impressed by the engagement of the community. We're very grateful to the way the club's performing."
Michael Whiting covers AFL news for AFL.com.au. Follow him on Twitter: @AFL_mikewhiting
