North Melbourne chairman James Brayshaw has slammed the AFL’s cost-of-living allowance (COLA) after details of Sydney’s bold nine-year $10 million deal for Lance Franklin emerged.

"At the moment we have two clubs allowed to pay $800,000 to $1 million more per annum.  We believe it is totally unacceptable and has to be abolished as soon as possible," he told the Herald Sun’s Jon Ralph.

Brayshaw claimed he’s long been lobbying league chief Andrew Demetriou about scrapping the 9.8 per cent allowance which will be worth an incredible $944,000 next year to Sydney and Greater Western Sydney.

“I won’t discuss the specifics of the deal, but my philosophy is I am very much against priority picks and very much against the additional allowance.

“I have a very strong view that as soon as we, as a competition, get into an area where everyone is paying their players the same and everyone has the same picks, that is likely to create a competition that works.

“At the moment we have two clubs allowed to pay $800,000 to $1 million more per annum.

“We believe it is totally unacceptable and it has to be abolished as soon as possible.”

The AFL released a statement on Tuesday night saying it will investigate the proposed deal and there are reports the league is prepared to block the deal.

Brayshaw has also voiced anger at departing Sydney chairman Richard Colless, after he claimed the Swans’ finances were ''perilous''.

It’s understood Colless detailed the financial health of his club to fellow club bosses before the Brownlow Medal count last year.

''Everyone says where does this angst towards Sydney come from - Brownlow Medal day there is a commission meeting involving the presidents last year,'' Brayshaw said on Triple M.

''Richard Colless got up and spoke and said the Sydney Swans were one bad year away from being in a very perilous financial state.

''So, you can imagine the room when he said that, given that they were playing in the grand final a week later. So I looked at [then Demons president] Don McLardy and he said: 'Mate, if you want to know about a perilous state, come and talk to me'. Give us a spell …

''Two weeks after that, Kurt Tippett comes along for a million bucks, then 12 months after that Buddy Franklin comes along for $1.4 million. At that point you sit back and go: 'How perilous is your state?'

''So, everyone says: 'Why do the Melbourne clubs get angry?' Richard was the one who put this on the table that there were issues up there if they had a bad year.''

Sydney made a profit of more than $200,000 after winning the premiership in 2012.

''I look at it and go, well, the highest-paid player at North Melbourne earns 600 grand.”

Brayshaw is not alone with several other league heavyweights voicing their concern and frustration.

Adelaide CEO Steven Trigg said: "On one hand, you want the competition to be fair in terms of where there is a genuine extra cost involved. On the other hand, at the moment, the rest of the competition would say it's providing a capacity to land marquee players.

"For that reason as well as the fact that the competition is having a broader look at equalisation, the cost-of-living allowance and various other allowances around the competition need to be – and we understand will be – brought into question as other equalisation levers are looked at."

Former Hawks boss Jeff Kennett squared off at the suggestion the AFL could support Franklin's $1.4 million salary with a marketing component.

"If they were to do that it is almost a criminal act," Kennett said.

"It would totally prostitute the concept of free agency and AFL marketing money going to help establish new clubs."

Western Bulldogs president Peter Gordon claimed there’s "no sufficient basis" for the COLA.

"I don't want to express a view about Buddy Franklin ... I simply say, the sooner we get to an uncompromised draft and an uncomplicated and even salary cap, the better off we'll be," he said.