The AFL has put the squeeze on Essendon, threatening a funding cut over claims the club is paying suspended coach James Hird.

Essendon are in the middle of an increasingly-bitter battle that has flared in the last week between the AFL and Hird’s camp.

It is the latest fallout from the club’s supplements scandal, which resulted in Essendon being kicked out of the finals and Hird suspended for 12 months among other heavy AFL penalties.

The AFL punished the club in late August, but the Bombers remain under an Australian Sports Anti-Doping Authority investigation.

A week ago, AFL chief executive Andrew Demetriou was adamant that Essendon was not paying Hird during his ban.

The AFL and Essendon have since been in behind-the-scenes talks about the specifics of Hird’s suspension.

Hird’s wife Tania then attacked the AFL on Wednesday, saying Demetriou knew Essendon were paying her husband.

She also accused the league of threatening Hird and the club.

After several days of public silence, the league came out swinging on Thursday with a threat to withhold funding from the Bombers.

The matter could also go before next week’s AFL commission hearing.

The AFL said that until it has a formal reply from Essendon over Hird’s suspension, “the club has been informed the AFL will withhold an amount from regular AFL discretionary distributions to Essendon each month.”

Demetriou added: “Since September, the AFL has been in consultation with Essendon concerning the terms of James Hird’s suspension, including the fact he cannot be paid by the club for a period of 12 months.

“The public statements from the AFL, from myself as CEO over the last week, were in the belief that Essendon had concluded its payment arrangements and begun the suspension period.

“The AFL has since sought confirmation and is yet to receive it.

“Essendon have also been advised in writing that if the club continues not to comply with the terms of the suspensions, the matter will be referred to the meeting of the AFL commission in Melbourne next week.”

The AFL also said that before its penalties against Essendon and Hird were announced, the Bombers coach had agreed that “he shares responsibility for the inadequate governance within Essendon’s football department.”

Hird’s media adviser Ian Hanke angrily hit back about the AFL’s threat to withhold funding from Essendon.

“To me that raises serious issues about the governance of the AFL and the way it operates, he told 3AW.

“The tenor of this debate is turning now on to the AFL.

“You could (say) that the AFL is actually bringing the game in to disrepute because of its poor governance.”

Tania Hird had been similarly scathing of Demetriou and the AFL the day before.

“Of course he’s being paid, that was the deal,” she said.

“Andrew Demetriou knew it, the AFL knew it.

“In my opinion, it’s time for the AFL to stop threatening my husband, it’s time for them to stop threatening the club, and it’s time for them to stop distorting the truth.

“Their behaviour this year has been appalling.”

Essendon said in a brief statement that they had been in regular contact with the AFL about Hird’s suspension.

They will respond to the league’s statement “in due course”.