Player payments are set to be cut by around 50 per cent across the Border and North-East to help clubs survive the fall-out from the coronavirus pandemic.
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AFL NEB region general manager John O'Donohue said Victorian regions and metropolitan leagues had lobbied the AFL to have spending cut in half.
Clubs will be told the exact figures in coming days and have been advised to start renegotiating contracts with players and coaches.
Reductions are likely to continue into 2021.
"The amount hasn't been confirmed yet but it will be slashed rather than just reduced to support clubs," O'Donohue said.
"We have already seen Myrtleford come out and say they have lost $60,000 worth of income over the Easter period.
"That would have obviously floated them through a portion of the year.
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"Clubs won't have the revenue streams they have in the past so the feeling is we need to slash the caps initially, even if we played 18 games, and then work through a pro-rata ratio after that."
O'Donohue said clubs had reacted positively to the cuts during discussions over the past fortnight.
"There hasn't been any negativity from the clubs about the player cuts," he said.
"I've also told them not to expect a return to 2019 levels in 2021.
"It's probably a chance to recalibrate the whole footy industry at the moment as obviously the biggest expense to footy clubs is player payments.
"The money won't be around to support community sport the way it has been.
"A lot of people have lost their jobs and lost their income so for players to take a significant pay cut isn't the end of the world."
The Ovens and Murray has a salary cap of $160,000, followed by Tallangatta and District ($80,000), Ovens and King ($70,000) and Upper Murray ($50,000).
The Hume league has a $90,000 cap.
The player payments cuts will apply across Australia with the exception of South Australia who operate under a matches played system.
