LANCE Franklin's controversial move to the Sydney Swans rather than Greater Western Sydney killed what little faith the AFL hierarchy still had in the cost of living allowance (COLA).

But speaking on COLA before the League's historic first all-Sydney final on Saturday, AFL chairman Mike Fitzpatrick said the main thing was that Franklin had gone to the city. 

Fitzpatrick admitted being disappointed when the bombshell was dropped in late 2013 that Franklin would join the Swans in a record deal. 

The widespread assumption had been that if the star forward left Hawthorn, it would be to join GWS. 

The Swans' coup shone a harsh light on COLA, which was supposed to help teams in non-traditional AFL states retain players. 

"I was quite disappointed - I reckon at the time, I was the last defender of COLA in the executive and the commission," Fitzpatrick told ABC radio. 

"I felt expansion in the north was really important. 

"That announcement convinced me I'd been wrong for a long time.

"If COLA worked the way I thought it worked, then Sydney were probably out of the equation."

But Fitzpatrick is rapt with the effect that Franklin has had on the game's profile in Sydney, saying the Swan is one of those rare players who transcends the sport.

"The best thing that happened, either way, was that he went to Sydney," Fitzpatrick said. 

"Having someone of that talent in the Sydney market, it's just been terrific for us and it's a bit like having had Tony Lockett in that market."