Following The Examiner's release of the Gemba business case into the viability of a state AFL team, AFL steering committee member Errol Stewart said a new Hawks deal was essential.

The State Government wants a Tasmanian team, which it says would return a profit within three years, have 25,000 members and would guarantee 11 games in Launceston a year for a $3 million annual government contribution.

That is on top of an initial set-up cost of $8 million and $10 million spent on Aurora Stadium.

A spokesman for Sports Minister Michelle O'Byrne said yesterday that negotiations for an extension of the Hawks deal - four roster games for $3 million a year until 2011 - would start next year.

"The Government values its relationship with the Hawthorn Football Club and the significant economic and community benefits which have flowed from this arrangement are on the public record," the spokesman said.

But Opposition sport spokesman Peter Gutwein said he did not have confidence in the Government to manage AFL in Tasmania.

"Our long-term aim should be for a Tasmanian AFL team, but in the short term we cannot afford to and must not lose Hawthorn," Mr Gutwein said.

"The Government compromised this relationship with the ham-fisted and ill- conceived manner in which the Premier contemplated putting the Hawthorn deal out to tender; only to back down in the face of a furious public reaction.

"Labor's handing of the Hawthorn issue, and its attempts to block the release of the business case for a Tasmanian AFL team, do not inspire confidence about its ability to manage AFL in Tasmania for the future."

The Examiner obtained the report under Freedom of Information.

Mr Stewart said the business case for a Tassie team stacked up and it was a wonderful aim for the city - from a tourism, sporting and business perspective.

"But the fundamental thing is that (AFL chief executive) Andrew Demetriou is saying no to a new licence and until a Melbourne club falls over or wants to amalgamate we are not going to get a side," Mr Stewart said.