Melbourne Football Club's plan to build a new home base at Caulfield Racecourse is on life support, following fierce opposition from the precinct's major tenant, Melbourne Racing Club.
The powerful racing organisation dealt a hammer blow to the Demons last week when MRC chairman Cameron Fisher declared the football club's ambitious $100 million project "won't happen".
"As far as we're concerned, it's a dead matter," Fisher told members at the MRC's annual general meeting.
The Demons have also lost key support at state government level since the departure of former premier Jacinta Allen, who along with Sports Minister Steve Dimopoulos was seen as a chief ally. The football club's position could be further weakened by a Coalition victory at the upcoming state election.
The setback compounds a turbulent period for Melbourne Football Club, which earlier this year sacked CEO Paul Guerra and is now facing legal action from the former chief executive.