COLLINGWOOD president Eddie McGuire says geographical location should not determine the size of a club's salary cap.

McGuire has been vocal in questioning the cost of living allowance given to the Sydney Swans and Greater Western Sydney, which gives them just under 10 per cent extra in their salary caps compared to other clubs.

Speaking on Triple M on Wednesday, McGuire said that the AFL fact-finding mission to the US on the equalisation issue of which he was a part was told that in American sports location played no part in assessing its salary cap.

"I have agreed with cost of living over the journey but … every one of the major international sports in America said it does not matter whether you live in Green Bay or New York or Cleveland or Los Angeles - you don't get any extra in the salary cap," McGuire said.

He said all clubs need to be able to pay 100 per cent of the salary cap to compete over time and that clubs such as the Western Bulldogs, which he said paid less than the full salary cap, had little chance of competing until they could do so.

"Teams like the Bulldogs must get 100 per cent [to pay the full salary cap] so they can go into the market [and] they don't lose players to free agency like [Jarrod] Harbrow and like Callan Ward," McGuire said.

"They can't take on a side – if they're paying 95 per cent of the salary cap and take on a team that is getting 110 per cent of the salary cap recurring over 15 years – and expect to be in [the game]."

He said that achieving that parity meant more money was needed in the next broadcast deal, players needed to take a little less, or a combination of both.

Swans coach John Longmire said on Tuesday McGuire's view was misplaced: "Well if it wasn't for the cost of living, it wouldn't be an even playing field for GWS and the Swans."

McGuire said he was happy to concede that if clubs such as Collingwood dominated the local market to such an extent that it stopped clubs such as Melbourne or the Bulldogs from gaining sponsors, then the Magpies should tip money into a redistribution pool.

He said stadium deals were also a problem, reiterating what Hawthorn president Andrew Newbold said on his return from the US.

Equalisation will dominate discussion at the AFL CEOs conference that begins in Creswick on Wednesday.

The equalisation debate and McGuire's comments on the cost of living allowance will add spice to his trip to Sydney to watch Collingwood take on the second placed Swans at ANZ Stadium.

The most recent game between the two clubs saw Swans champion Adam Goodes being racially abused by a spectator and McGuire apologising on behalf of the club.

McGuire then became front and centre of the controversy after his 'King Kong' gaffe on radio that draw condemnation from Swans officals and led to McGuire apologising to Goodes.

McGuire, who AFL.com.au understands has virtually completed the confidential racial and religious vilification process organised by the AFL after the controversy, will be taking a low-key approach in the build up to the game.

He will catch up with Swans' president Richard Colless at the club's president's function before watching the game.

The game is vital for both teams with Collingwood sixth on the ladder and just two games behind the second placed Swans.