The Melbourne Demons have terminated their co-major sponsorship deal with DriversDepot before the end of the first year of what was supposed to be a three-year, $4.5 million agreement.

The shock move comes as the club prepares for the finals series, adding to the mounting financial pressures at the AFL club.

Veteran AFL journalist Caroline Wilson revealed the sponsorship has been cut short because DriversDepot has been unable to meet its financial commitments.

Know the news with the 7NEWS app: Download today

“The reason DriversDepot have not been able to come up with the sponsorship funds, I gather a small amount of money was paid to Melbourne earlier this year, but the funds have not been forthcoming,” Wilson told 7NEWS, later suggesting the figure was $200,000 (out of the agreed $1.5million a year).

Despite the termination, the DriversDepot logo will remain visible on players’ jumpers, sponsor backdrops and club polo shirts throughout the finals.

The club has deemed it too costly and too late to remove all the branding ahead of September.

“Cost of taking the logo off the club polo, off the players’ jumpers, and off the sponsors’ backdrop, etc. is around $100,000,” Wilson said on Channel 7’s The Agenda Setters.

“So unless Melbourne in the next two weeks can sign a new major sponsor for the finals in a deal clearly going forward for next year, they are going to have to promote DriversDepot, even though they haven’t been paid.”

The development represents another significant financial setback for the Demons, who are already facing a substantial loss for the year.

The club is also losing co-major sponsor Zurich at the end of the season, leaving Melbourne searching for two major sponsors heading into 2027.

“So DriversDepot will be on the players jumpers, on the sponsors backdrop, on (coach) Steven King’s club polo. And there’s nothing really the club can do about it because it’s very costly to remove all those logos,” Wilson told 7NEWS.

“And and it’s probably too late now to sign a major sponsor.

“Melbourne’s hopeful of signing a new major sponsor next year, but it’s another shattering financial blow for a club that is going to make a big loss this year.”

She said the year had been a financial “disaster” for Melbourne, not only ending their relationship with Zurich, but also forking out a payout to sacked coach Simon Goodwin and dealing with multiple legal issues.

Stream The Agenda Setters on-demand anytime at 7plus

Wilson also noted that crowd attendances had also been poor, despite the team’s success on the field.

“It’s a highly uncomfortable situation ... and they don’t want to change their jumpers due to all their young supporters,” Wilson said.

She said there was, however, some good news with two major sponsors pending.