Dean Bailey has thrown a hand grenade on the AFL club that sacked him, admitting to coaching for draft picks in his first two seasons as Melbourne coach.

As he closed the door on four years with the Demons, Bailey re-opened the "tanking" debate by saying he experimented with players in unfamiliar positions during the club's wooden spoon years of 2008 and 2009.

The Demons' lack of wins ensured them prized picks Jack Watts, Tom Scully and Jack Trengove in the drafts held at the end of those seasons.

But Bailey denied his team deliberately aimed to lose matches in that period, saying there was never a question of players not trying when they took the field.

"I had no hesitation at all in the first two years of ensuring this club was well placed for draft picks," Bailey said.

"I experimented to a level that meant we got players into certain positions and we developed them in those positions.

"You can't expect a player to go out there and not try. Players were trying. Of course they were trying during that period of time.

"I was asked to do the best thing by the Melbourne Football Club, and I did it."

Witty, matter-of-fact and showing dignity in the face of adversity, Bailey refused to point fingers at anyone else for his axing - confirmed on Sunday night via a phone call from club president Jim Stynes.

Yet Bailey's carefully chosen words suggested a breakdown in his relationship with senior club officials and elements of the board.

While Stynes praised Bailey's contribution and publicly said all at the club were taking responsibility following the 186-point weekend loss to Geelong, only one has paid with his job.

Chief executive Cameron Schwab has been given a one-year contract extension as Bailey exits, while football manager Chris Connolly had his job guaranteed by the board.

Despite the manner of the defeat which led to his dismissal, Bailey backed his players and said he believed he had their full support.

"I can't think of a single player I have coached in the last two or three weeks who wouldn't be right behind me, who wouldn't put their hand up to go out and play well for me.

"I think that is a reflection on the playing group ... I've always had great support from the players and the coaches and I continue to have that now."

Bailey said he was shattered to lose his job, but would seek out another role within the football industry - sooner rather than later.

"I enjoy coaching - it's a great industry I'm in," Bailey said.

"But you move on quickly in the business. I love what I do.

"I enjoy all aspects of the footy industry ... I'm keen to stay in the business."

Former Demons skipper Todd Viney was appointed as caretaker coach for the remainder of the season, and has at least five weeks to prove his credentials.

He returned to Melbourne this season as head of their player development program after assistant coaching stints at the Demons, Hawthorn and Adelaide.

Viney, who played 233 games with the Demons, also had a brief spell as fitness coach for former tennis star Mark Philippoussis.

The Demons sit 11th and still have a chance of making the top eight.

Stynes said the Demons would aim to secure the best coach available for 2012.

Outgoing Collingwood coach Mick Malthouse and out-of-contract Western Bulldogs mentor Rodney Eade have been mentioned as possible Demons targets.

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