The AFL has dismissed suggestions a threadbare Melbourne should relocate to the Gold Coast, but warned the competition would not endlessly tolerate clubs who failed to perform financially.

In response to a call by Hawthorn president Jeff Kennett for the Demons to "bite the bullet" and head north, Demetriou said the AFL had no interest in establishing anything other than a homegrown club on the Gold Coast.

Melbourne chairman Paul Gardner effectively told Kennett to mind his own business, saying the Demons had not considered relocation and had no plans to do so.

"(Kennett's views) do not reflect the views of the Melbourne board, the Melbourne Football Club, the AFL or, in fact, any other chairman or president that I have spoken to," Gardner said.

"There has never been any discussion, at any time, with any partner about the Melbourne Football Club relocating anywhere except the new (Olympic Park) rectangular stadium, due for completion in 2010."

Demetriou said the 17th team on the Gold Coast, due to enter the AFL in 2011, would begin from scratch.

"We've got a bid team up there already," Demetriou told Fairfax News Radio.

"We've got a great group who are doing a lot of work to hit some hurdles that they must meet by October 14.

"It's pretty clear the Gold Coast community want their own team and a team that's built from the bottom up and that's why we've been talking to the clubs about this development.

"We're not really interested in a team going to the Gold Coast to be quite truthful."

But the league boss warned Melbourne that apathy about their perilous financial plight would not be accepted in such a competitive environment.

"All the clubs won't tolerate a situation where clubs aren't lifting their game to perform off the field as all the other clubs are endeavouring to do," Demetriou said.

Melbourne are believed to be headed for a $1 million loss this season and they are also performing poorly on the field, bottom of the ladder with just one win from eight games.

Not helping their situation is the AFL's intention to significantly decrease special financial assistance.

"The club's not travelling well, it's got debt, it will lose money again this year, it will have cash flow problems going forward," Demetriou said.

"Our assistance that we provide goes down from $1 million this year to $250,000 next year".

Demetriou urged Demons supporters to "get off your bum and get behind the club" to ensure the 150-year-old club's survival.

"At the end of the day, other clubs' (supporters) have galvanised behind their clubs," he said.

"You've seen the Kangaroos this year get 30,000 members, you've seen the Bulldogs get a $25 million redevelopment at the Whitten Oval."

Kennett, who told a charity dinner on Thursday night it was "fool's gold" to believe the club could survive in Melbourne, stood firm on his views that the Demons should move.

"I know that's emotionally difficult to many, being Melbourne supporters ... but standing still is not going to secure the long-term stability for a football club in this increasingly competitive environment," Kennett said.

Kennett's comments create a bitter backdrop to the match between Melbourne and Hawthorn at the MCG on Sunday, with Gardner saying it will increase his players' motivation.

The two clubs were close to merging in 1996, with Hawthorn voting to withdraw from the proposed merger at the 11th hour.

Gardner said that experience had been "a fork in the road" for the Demons and they were intent on maintaining their identity.

He said Kennett appeared to be looking to avoid the other clubs having to give up draft picks and players to form the new Gold Coast club.

"Jeff doesn't like those concessions and he's looking for another alternative, which is `why don't we move another team lock, stock and barrel'," Gardner told SEN radio.

"If he's that keen on the Gold Coast he should move Hawthorn there."

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