Collingwood CEO Craig Kelly is at the centre of a racism storm engulfing Collingwood Football Club.

The 1990 Magpies premiership defender turned player agent then club boss has been accused of causing an unsafe work environment through a pattern of behaviour.

It has been alleged Kelly suggested putting a live possum in a room with Indigenous players, called an Aboriginal Elder a "dumb old b****", and a failed to fulfill obligations and financially compensate a First Nations organisation.

These occurrences allegedly happened after former Collingwood president Eddie McGuire launched the Do Better report in 2021 and promised his club would make a clean break from its history of poor treatment of Indigenous players.

The allegations were made in court documents filed Monday with the Federal Circuit and Family Court of Australia by the club's former head of First Nations strategy Mark Cleaver.

Collingwood, who first engaged the Palawa consultant in the wake of the Do Better report, was also allegedly the target of multiple attacks from Kelly, including those of a physical nature.

A number of issues that do not pertain to Indigenous issues have also been raised in the court documents.

According to court documents, Kelly and Cleaver met on February 6 this year with the club's community, foundation and facilities executive general manager, Kerrie Brewer, in her office to discuss Collingwood's community strategy.

Kelly brought up the obligation for a cultural room after he suggested Collingwood president Jeff Browne had "been on my arse about it".

Cleaver told Kelly they needed to go through any cultural artefacts of the club's with estranged Magpies superstar and Ballardong Whadjuk Yuat Yamatji man, Leon Davis, to decide what would be in a room that was also an Aboriginal safe space.

Court documents from Cleaver allege: "Kelly picked up a Marngrook [a ball made of possum hair used by Indigenous peoples in Victoria] that was on the desk and said, 'I don't give a f**k what you put in there, put this shit in there' and forcefully threw the Marngrook at Cleaver."

"The Marngrook hit Cleaver, which humiliated them and caused them pain because of the paresthesia (abnormal sensation of the skin) caused by their multiple sclerosis.

"Kelly continued talking and said: 'I don't give a f**k if you put a live f***ing possum in there, just get Jeff [Browne] and [Indigenous woman and vice-president] Jodie [Sizer] off my arse'."

Brewer is alleged have responded by saying: "Great one, Ned [Kelly], that's not culturally safe."

Documents state that Kelly then "laughed", prompting Brewer to remark "not appropriate" and Kelly is alleged to have replied: "I know it's inappropriate".

The documents also detail how the club met with Indigenous support group Dardi Munwurro on March 18, with the organisation claiming it hadn't been paid $500,000 that club sponsor CGU had promised from the Do Better report.

After Kelly said how he cared "about our Indigenous people", court documents asserted that Indigenous Elder Aunty Carol Thorpe turned and said, "you don't say 'our', we don't belong to you".

Kelly later admitted he did not know who Aunty Carol Thorpe was and according to the documents asked: "Who was that old bird?"

After Cleaver told Kelly it was "Aunty Carol" - the wife of Dardi Munwurro chief Alan Thorpe - "Kelly allegedly laughed: 'That dumb old b**** was really angry but I got her to come around'."

Kelly in a further exchange on March 18 is alleged to have asked Cleaver: "Why do you need to use google maps? I'd assume your people can navigate with their eyes closed."

When Cleaver joked in response that his people "flew by helicopter", Kelly allegedly called him a "dickhead" and forcefully "jabbed" Cleaver in the shoulder.

Cleaver, who identifies as non-binary and gay, alleges Kelly told them "we are taking my car; it's a real man's car".

The documents were filed for an application against Cleaver's dismissal of his role in seeking compensation for "hurt, humiliation and distress and economic loss".

They also reveal Cleaver made a statement to Victoria Police on April 20 over Kelly's alleged "physical assaults".

Cleaver had earlier complained to the club's administration, who on March 26 raised with Kelly a number of allegations, court documents reveal. But that action led to a confrontation the following day when the pair passed each other in the corridor towards the café at the club.

Kelly allegedly spoke to Cleaver and grabbed their hand to forcefully squeeze it. The tight grip caused Cleaver significant pain because of multiple sclerosis, the court documents claim.

Cleaver says they struggled to extricate their hand from Kelly.

The club told Cleaver to immediately work from home before two days later being told that none of the complaints had been substantiated by an investigation.

The club said the claims made also in the court documents including the remark about the live possum was "not substantiated", it found that Kelly "tossed" the Marngrook to Cleaver, not thrown as was alleged, and the remarks about Cleaver's multiple sclerosis had been "acknowledged but not deemed ableist or racist".

Cleaver was suspended on full pay on May 1 after receiving a letter from the club president.

Cleaver's employment was terminated on May 6, just hours after Maurice Blackburn lawyers wrote to the club saying it would fight the claims on Cleaver's behalf, having made a complaint also to the AFL's integrity unit six weeks earlier.

"The allegations in this case call into question whether (or not) the Collingwood Football Club has learned anything from its multiple self-inflicted racism scandals," Maurice Blackburn principal Daniel Victory said in a statement.

"We are entitled to expect more from a club that has promised to do better.

"The conduct alleged in this case has no place in society or any sporting club and especially not in a league that holds itself out as an agent for social change.

"Football fans have a right to feel let down once again by the Collingwood Football Club.

"The AFL should consider penalising premiership points from clubs if allegations like this are proven."

Collingwood issued a statement on Monday evening in response.

The club has a litany of complaints over its long history including from former Collingwood players Héritier Lumumba, Andrew Krakouer and Davis, and has also had a poor reputation historically from its fans for racist behaviour at AFL matches.

"Collingwood is aware of allegations made by a former staff member," the statement said.

"Collingwood continues to work hard on our commitment of ensuring our environment and workplace is welcoming, safe and inclusive at all times, on and off the field.

"We take all matters raised seriously and when the former staff member raised matters internally in March this year, the club looked into those concerns in line with our organisation's workplace policies and procedures."

The Club claimed that in addition to the internal process, "an external expert was engaged to review the findings".

"Both processes found no breach of workplace law. Following the conclusion of processes, the former staff member made further allegations to Victoria Police, which examined them and determined not to take any further action," the Club said.

"The former staff member was employed by Collingwood for a period of six months. The employment ended for reasons unrelated to their concerns.

"Following their departure, the former staff member lodged an application with the Fair Work Commission, but the matter was not resolved.

"While it is unfortunate this situation has not been resolved, the club believes that it has acted lawfully and intends to defend the matter."

The case is listed for a court hearing on August 27.