The AFL has rejected an application from East Fremantle and the WA Football Commission for financial compensation as a result of star teenager David Swallow joining the Gold Coast 12 months ahead of this year's national draft.

But the Sharks will still be rewarded for producing Swallow, with the WAFC set to give them their 2010 draft payments in advance to cover for the surprise departure.

Swallow created AFL history last year when he became the first player to sign with a club one year before a draft.

The Gold Coast have the first three selections in this year's national draft and declared they would definitely select the Shark after seeing him dominate in the under-18 national titles as a 16-year-old.

The move shocked East Fremantle, who had him in their planning for league football this season after an impressive 2009 debut.

The Gold Coast will play in the VFL this season before entering the AFL in 2011.

The Sharks argued that because they had lost a player to another State league, they deserved a transfer fee on top of the draft payments which will come later this year. But the AFL said he hadn't joined a normal State league club, so draft rules should apply.

East Fremantle chief executive Peter Capes said the club had been promised WAFC assistance.

"The club has got a letter from the football commission to say that they'll help the club with the transfer fees," Capes said. "This caught everyone on the hop because it wasn't part of the draft regime. We've lost a player 12 months earlier than expected."