NORTH Melbourne chief executive Carl Dilena has joined the growing push for a cap on football department spending, saying the Roos have relied on supporter donations to keep up with the competition in recent years.

 

Last season, North spent one of the lowest amounts in the AFL on its football department, paying $16.9 million compared to Collingwood's League-leading $22.5 million.

 

Dilena told AFL.com.au he was heartened clubs had agreed in principle that beefed-up equalisation measures were needed to reduce the ever-widening revenue gap between the AFL's bigger and smaller clubs.

 

But the North boss added his voice to the growing number of clubs that now accept equalisation won't work unless there is a limit on football department spending.

 

"The raw components (of equalisation) are about getting all clubs in a position where they can pay the full salary cap and a competitive level of football department spend, while remaining profitable and sustainable," Dilena said.

 

"To facilitate that there needs to be some revenue sharing, but the model doesn't work effectively unless you put some sort of brake on football department spend. Otherwise that just grows and grows each year. 

 

"Most clubs have said they're in favour of a limit because it's getting really challenging just to keep up with everyone.

 

"So there has to be a restraint whether it's a luxury tax or some sort of cap – that's a critical component."

 

Last year, North raised $800,000 at a fundraising function attended by wealthy supporters, some of which was used to bring its total player payments up to the minimum 95 per cent of the 2013 salary cap.

 

Dilena said North would be in a position to pay 100 per cent of the salary cap this season, but would again be partially reliant on supporter donations to do so.

 

"The other thing that underpins us is that we've been doing a huge amount of fundraising, which isn't long-term and core revenue for our business," Dilena said.

 

"And that's really what equalisation will have to cover to some extent because we just can't keep going back to our key supporters and ask for them to contribute more.

 

"We see that as a temporary measure until we get to equalisation."

 

North bolstered its football department at the end of last season with a series of big-name signings that saw Geoff Walsh return to the club as football director and Leigh Tudor and Gavin Brown join the coaching team.

 

But Dilena said North had not considered joining the five clubs that now have stand-alone VFL teams – Geelong, Collingwood, Essendon, Richmond and the Western Bulldogs.

 

"We haven't really considered it seriously because our relationships with (VFL affiliates) North Ballarat and Werribee are working really well," Dilena said.

 

"The only question I'd have is if every other team in the competition has one and they're getting advantages then obviously you've got to consider that.

 

"But Hawthorn showed last year it's not something that's essential and it's really expensive to run your own VFL team."

 

In a wide-ranging interview, Dilena also discussed:

 

"In 2013, we brought it down another $1 million to $2.75 million. We're trying to make similar inroads this year, taking at least $700,000-$1 million off it. The debt reduction campaign through our members is going really strongly."

 

"We've signed up almost 27,000 members already, which is at least 4000 ahead of this time last year. We're really targeting 40,000 as our benchmark this year. We're just trying to keep setting records each year."

 

"We're really keen to entrench our long-term position in Hobart. We haven't really heard anything from the AFL in terms of setting that up (after North's three-season deal expires at the end of this season). It's a bit fluid in Tassie at the moment, they've got an election coming up in March. I think once the dust settles on that, people will start discussions on what 2015 will look like."

 

"(The Victorian Opposition) has made some suggestions over the last year that they'd be keen to fund [a redevelopment of Eureka Stadium]. Even with the existing government there would always be discussions with council and state government. It's really out of our hands, so we'll just wait and see how that all pans out. But it's a growth region and I think AFL games … would be fantastic for the area."