At the end of the 2008 season, AFL Tasmania decided to withdraw the Devils from the VFL in favour of restarting a new Tasmanian league encompassing the entire state.

A deal was struck that allowed a capped number of players from the Kangaroos to compete with either the Devils or North Ballarat in the VFL, starting in the 2006 season.

[3][4] During the season, Armstrong had stepped down as coach due to internal pressure from the playing group, ending his six-year term in charge of the Devils.

However, hampered in part by Cresswell's off-field issues, which included a gambling addiction and eventual fraud conviction, the club finished wooden spooners both seasons he coached the team, winning only six of a total 34 games.

[3][4] At the end of the 2008 season, AFL Tasmania decided to withdraw the Devils from the VFL in favour of restarting a new Tasmanian league encompassing the entire state.