The Brisbane Lions have announced chief executive Malcolm Holmes has resigned amid reports the AFL club is plummeting deeper into debt.

Debts of about $10 million, following $12 million of losses since the Lions’ last profit in 2007, have prompted the AFL to step in and play a role in rebuilding the once-mighty club.

The 2001-2003 premiers’ latest drama comes after a boardroom split brought about chairman Angus Johnson’s departure in October following the shock sacking of coach Michael Voss in August.

Lions chairman Bob Sharpless said the club was “in a period of transition”.

“Malcolm has steered the club well through some difficult times,” he said.

“He has overseen a significant restructuring of the club’s operations, all while growing revenues and fostering better relationships with key stakeholders.

“Malcolm led the rebuild of the club’s culture, developing a fully integrated business with a core focus on football.”

Holmes resigned following a meeting on Thursday morning, ending his four-year stint at the Lions.

It’s believed the struggling Lions, who are last on the AFL ladder with one win from seven matches, are heading for a $2 million loss this financial year.

It is another blow for the club, which received a $1 million AFL bailout in 2013.

Media reports claim the club is seeking additional assistance from the AFL to help with their mounting debts.

Carlton chief executive Greg Swann, AFL Queensland boss Michael Conlan and his predecessor Richard Griffiths are believed to be among those in the running to replace Holmes.