HAWTHORN president Jeff Kennett says North Melbourne erred in not relocating to Gold Coast when they had the chance at the end of 2007.

Speaking after Hawthorn secured a five-year deal to continue to play home games in Tasmania virtually ending North Melbourne's bid to play seven home games a season in the Apple Isle, Kennett said that with the benefit of hindsight they should have moved to Queensland.

"We all know they've got challenges and I think in hindsight most would have said that they should have perhaps accepted the offer of the AFL to move to the Gold Coast and accept their $100 million," Kennett said

Kennett said the Kangaroos were now not in a position to tap into the Tasmanian market.

"The difficulty for North to move to Tassie is still the fact that there's been millions invested in the new facilities at their ground (in Arden St) which represents to me a hell of a conflict of interest," he said.

"All of a sudden you're saying we're taking seven games away from here [Melbourne], I think it flies a little in the face of those who have invested so well in that facility [Arden St]."

Kennett conceded that the renewed agreement with Tasmania could mean the state never has an AFL team in its own right. But he had little sympathy for AFL Tasmania general manager Scott Wade, who he said had failed to prove the state could sustain a team.

"I'm sorry that AFL Tasmania is so bitter," Kennett said. "If Scott was a little more creative he might have built a better reputation and a better league down there.

"AFL Tasmania did try with a seconds team I think with North Melbourne and that folded., so they had the opportunity to prove they were able to participate in a bigger competition and Scotty and his boys failed dismally.

"To the credit of the AFL ... they've always said to us if we want to stay there [Tasmania] they wouldn't force us out."