THE Western Bulldogs have narrowly averted a solvency crisis after a last-minute intervention late yesterday by Premier John Brumby's office over a multimillion dispute between the club and the City of Maribyrnong.

The breakdown in relations between the Bulldogs and its local council earlier this month was today to have stopped all building work on the half-completed Whitten Oval redevelopment.

Not only has the council failed to provide any of the $1 million it pledged for landscaping the new training and education facility, but its refusal to provide a planning permit would have prevented $8 million in further funding from local, state and federal governments.

Bulldogs chief executive Campbell Rose, who had not divulged details of the crucial breakdown or any impending problems at last month's learning centre launch, admitted last night the club "was on the verge of being brought to its knees".

"Had the Premier's department not intervened and provided us with planning approval we would have stopped the project and owed several millions of dollars to our builder, which had been pledged as public money but has not yet been forthcoming," Rose said.

"I'm enormously appreciative of the State Government's action. It's a huge relief."

The dispute was over the council's refusal to issue a permit for the Victorian University to establish an education and training centre for 140 students and 45 teachers. The council's objections centred on its belief the centre was more suitable as an outer-activity development alongside Footscray Station and that the Whitten Oval provided insufficient car parking.

It also claimed the site for the university learning centre in the John Gent Stand was inadequate for so many people and the infrastructure involved.

While the AFL had been made aware of the threat to the club and its ongoing existence it had not intervened. Rose has averted the crisis in the short-term but faces a battle in receiving the $1 million pledged from Maribyrnong — almost half of which should have been put into the project by now.

Without the university component a massive chunk of the $8 million pledged by the Federal Government would have been frozen.

■The global financial crisis has cost Richmond a major sponsor, with the Tigers yesterday announcing that the Australian Finance Group will end its association with the club at the end of the season.

Tigers president Gary March said the mortgage broker was unable to continue its support and renew its contract with the club due to the changing financial climate.

"We respect the fact that due to the changing nature of global economic markets AFG are unable to continue with their sponsorship of the club," March said.

"AFG has been a terrific partner for the club and we wish them all the best in the future."

AFG became a Richmond sponsor in 2004 after the Transport Accident Commission ended its sponsorship.

with KAREN LYON