Speaking ahead of his visit to the North-West Coast on Sunday where we will be a special guest of the Penguin Football Club for one its major functions of the year, the recent Australian Football Hall of Fame inductee said his initial reaction when assessing the situation in the lower levels was that he was "disappointed in the major party to this and that is the AFL".

"The AFL has got to take responsibility,'' he said.

"It is all well and good to have games in China and have exhibition games overseas, but the game in China, it can only be a money raising thing because people aren't going to travel to China to watch a game of football and the teams that generally play in that struggle, and there are more important things than that.

"I look at overall cost of the game and I see to stay in the competition you have to have X amount of dollars for the association, X amount of dollars for insurance and uniforms and there are a lot of people out there that are doing it tough.

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"So if they have the choice to buy a pair of socks, shorts or a jumper, or pay off more of their house or just keep something back for emergencies, they will do so, and as a consequences, kids will then gravitate to sports that their parents think are a little bit cheaper, and that might be basketball or soccer, or it might not be any alternative.

"So what we are doing we are cutting off the very supply of players to our game and the most important thing that you have is your players.

"Not far behind that is your supporters, and nothing else gets near those two."

He said one potential way to provide support would be via some sort of "national insurance scheme paid by the AFL", using the "big profits" it makes, and could also be used as a sort of "means test".

Malthouse, whose coaching tenure spanned 718 games for Footscary, West Coast, Collingwood and Carlton after playing 174 games for Richmond and St Kilda , said the AFL simply could not ignore Tasmania during this time, and those in power needed to remember what the state has contributed to the game, considering four of Australian Football's official legends (Darrel Baldock, Royce Hart, Peter Huson and Ian Stewart) come from the state.

"That shows you the quality of players that were once part of the AFL, but we are not seeing the numbers anymore, and we need to keep asking why,'' he said.

"If we don't have the full representation, there needs to be something done at grassroots by pumping the same amount of money that they have into the Gold Coast into Tasmania.

"And don't dismiss it that it is only a small island with 500,000 people and the big markets are in Sydney and all that sort of stuff, don't ignore the very thing that has made our game great, giving every kid the opportunity to play football.

"And more importantly, don't ignore the four states that have been predominantly the supplier of AFL football, that is Western Australia, South Australia, Victoria and Tasmania."

Malthouse, who has a close connection with Tasmania as his son lives in Launceston, said he jumped at the chance to help when asked by fellow ABC commentating colleague, and Penguin native, Alister Nicholson, who will be joining him on Sunday. He said he was taking part to help ensure "there can still be a side called Penguin".

"I don't know if this is going to bring enough money to guarantee its future, but if we don't make an attempt to highlight the financial needs of these clubs they are going to die on the vine, and by dying on the vine will mean a lot of young kids won't have access to playing footy, it is as simple as that,'' Malthouse said.

Penguin's struggles have come primarily through lack of use of the function centre at its new home at Dial Park, with Nicholson saying he was happy to be part of it as he has "so many childhood" of the Two Blues.

"I just remember it being such a part of my childhood and I've always kept an eye on Penguin and hanging out for that premiership which they haven't had since '85'' he said.

"Mick volunteered his time free of charge, which is really good of him, so hopefully we will have a good day."

Tickets for the Mick Malthouse/Alister Nicholson function at Dial Park cost $60 per person, with tables of 10 $500. To book call Brian Lane on 0407 076 497 or email penguinfootballclub@gmail.com