The ABC has seen a Memorandum of Understanding between AFLNT and five other Borroloola associations headed by the Gulf Health Service, signed on April 10, 2014.
It said the Gulf Health Service would pay the AFLNT $180,000 per year plus GST for the program, which was forecast to run for at least three years.
Mr Jack said the other organisations, which included Mabunji, MAWA, Mungoorbada and the Malandari Store, were required to contribute to this funding.
It also said the Gulf Health Service would provide a fully maintained house and vehicle for the use of the AFL program.
"We thought [the AFL program] would be related to health, everyone being fit and all that," Mr Jack said.
"It just lifted our little community. About 1,200 people would turn up every Sunday to watch."
But he said after about a year "everyone just started blueing", other organisations who had contributed funding started pulling out, "the AFL mob were screaming for funding" and the program was cancelled.
AFLNT declined an offer to comment.