While admitting Ballarat most likely had the lowest payment budget out of any sides in the National Premier League Victoria competition, Smith said it was important the club did not blow its budget in its first year in Victoria's top tier.

O'Donnell had highlighted how the club handled his Visa as a reason for his departure, but also took aim at the way players were paid throughout the year.

However, Smith said the Reds started out behind the eight-ball in terms of player payments.

"Money doesn't grow on trees and while not wanting to cry about what we have, it's important to remember that we didn't want to go bust in a year, which we didn't," he said.

"Yes, we have a small and probably to be honest the lowest player wages in the league but that's nothing to be ashamed of.

"It's the reality that we live in and I will not be swayed to spend money that we don't have and to be financial responsible to our members, supporters and players.

"We are not making excuses but this club is here for the long term. It is about giving Ballarat players the best opportunity to develop and compete in the best leagues possible in the future."

Smith reiterated the Reds' stance on developing home grown players as a main focus, although he admitted there was now a need for some top-end players.

"We have a real focus on our Ballarat players and we don't apologise for that. Sure, we need two or three top class player now and maybe into the future as well, but our academy program that we have set up will in a couple of more years time be producing top quality players."

O'Donnell's departure leaves the technical director role vacant, although Smith said there were several other people around the club who could fill the role.

Ballarat's season gets under way on February 21.