THE AFL will cut its expenditure by at least $3 million in 2009 with the global financial crisis ensuring that challenging times will come.

Despite that, the League remains in "pretty good health" and, according to chairman Mike Fitzpatrick, well-braced for what might await it.

"With the GFC (global financial crisis), we're conscious things are different," Fitzpatrick said from a media briefing about the state of the game in Melbourne on Tuesday.

"It's going to be a challenge in the economic world. It's going to be challenging particularly on the corporate side as far as revenues to stadiums and footy clubs go.

"When we're looking at issues like expansion, we're modelling it and we're looking at how things are going to come out."

Fitzpatrick is adamant the AFL can weather the financial storm and still prosper in certain areas.

"Participation, membership and crowds were all at record levels last year," he said.

"All of the indications this year are [that they will continue to grow]. Membership for instance, compared to February last year, is up by nine per cent so it's pretty strong.

"We go into this environment financially strong.

"We've had very strong expenditures and revenues over the last few years. Obviously looking at what's coming … we will have a negative, non-expenditure growth. We will cut our expenditure by at least $3 million this year.

"So we'll go backwards in terms of what we're spending. We're looking at the GFC and cutting our cloth accordingly."

And expansion plans for teams from the Gold Coast and western Sydney – scheduled for 2011 and 2012 respectively – won't burden the competition.

AFL chief executive Andrew Demetriou recalled the criticism the League faced when West Coast, the-then Brisbane Bears, Adelaide and Fremantle were born.

"Historically, if you go back and look at every newspaper clipping, whenever the competition has expanded from 12 to 14 … [they said it was] the death of football, it's going to cost money and where are the players coming from?" he said.

"Fourteen to 16 was worse. [People said] these clubs won't survive. Every time the competition has expanded, memberships have grown, crowds have grown, revenues have grown, our participation levels have grown and the talent numbers have grown.

"So we actually haven't ever seen a contraction in anything we measure ourselves by when the competition is expanding. We're not quite sure why they would contract with another team in Queensland and another team in New South Wales. That is from a historical perspective."

Considering the further expansion of the competition post-2012 – in light of Tasmania's strong desire to assemble a club – Demetriou said no plans had been made at this stage.

"The fact that they (Tasmania) are there – who knows what'll happen in the future?" he said.