Demons president Don McLardy has resigned from his position in the wake of their meeting with the AFL.
Melbourne was speaking to the league about getting additional funds, but McLardy also revealed his intentions to step down.
In a statement to Demons supporters, McLardy said he was stepping down both for personal reasons and due to the performance of the club in recent times.
"There are two main reasons for this difficult decision. From a personal perspective, the imminent partial sale of my business, the success of which depends on the next 12 months performance, means I cannot continue to dedicate the time and effort required to what is an extremely challenging role," he said.
"This was a factor in my standing down as Chairman of the Reach Foundation last week, which most of you would be aware has been my other great passion."
"However, just as important is the recognition that our club as a whole is not performing as we expected, and as explained in my President’s speech on Monday change is required and members deserve to see a clear path forward for our club with new leadership, direction and energy as soon as possible."
The Melbourne president hailed fans for their support over the recent difficult period.
"Throughout it all, even at times when it was extremely testing to remain focussed and positive about the future, I was constantly encouraged by many of you to keep going for which I am very grateful," he said.
"I leave disappointed about the lack of on field success, but extremely confident in the strength of the core of passionate Melbourne supporters who have stepped up to help over the last 5 years."
Demons chief executive Peter Jackson fronted the AFL Commission on Friday morning in a bid to convince the league to provide extra funding to the struggling club who have won one game in 11 rounds and are widely reported to be considering sacking coach Mark Neeld.
Neeld survived a recent board meeting with his job intact.
But Jackson refused to give Neeld a vote of confidence on Friday, saying only that the board stuck by its previous statement that staff in the football department would be assessed on an ongoing basis.