GREATER Western Sydney is relieved its bid to recruit Lance Franklin was foiled by the Sydney Swans, but say their crosstown rivals should be stripped of the cost of living allowance following their audacious nine-year deal with the former Hawthorn spearhead.

GWS chairman Tony Shepherd told Fairfax Media on Monday it had "not been a good move" by the Swans to recruit Franklin, arguing the deal had harmed the image of the NSW AFL clubs.

"With hindsight I'm relieved we didn't get him – not that we could have come anywhere near that price," Shepherd said.

As the Giants prepare to host the AFL Commission at their new Olympic Park headquarters on Tuesday, Shepherd joined the recent chorus of discontent led by fellow club chairmen Eddie McGuire and David Koch that the Swans no longer have any legitimate claim to the $1 million cost of living allowance.

"The Swans have been in Sydney for more than 30 years and it can be argued that as an established club they no longer need additional support," Shepherd said.

"In Franklin they have made the longest and largest investment ever in a player. You don't make those type of decisions without having complete confidence in your business model.

"You shouldn't need those decisions subsidised by head office."

But Shepherd said the fledgling Giants still had a legitimate need for the cost of living allowance – the right to spend an additional 9.8 per cent above the salary cap – as they prepare to enter their third AFL season.

"We are a start-up club and we need support by way of an allowance as part of the charter set by the AFL and clubs to establish a second team in Western Sydney," Shepherd said.

"We believe COLA (the cost of living allowance) is valid but also understand why other clubs might perceive the Swans have abused the allowance in the recruitment of Kurt Tippett and Lance Franklin.

"We will be disappointed if the Swans' actions in recruiting Franklin cost our club in terms of COLA. We only entered the AFL competition two years ago and are still establishing ourselves."

The AFL has confirmed any reduction or removal of the Swans' cost of living allowance will be part of the new equalisation measures set to be announced before June.

The Swans last week commissioned a report by international management consultants in a bid to retain the cost of living allowance.