Melbourne great Garry Lyon has questioned whether his former club deserves to play in the AFL finals this season after the Demons' costly eight-point loss to Sydney.

The Demons are yet to beat a top-eight side. Credit:AAP

The Demons slipped to seventh after Sunday's defeat and continued their winless streak against top-eight rivals, with matches still to come against West Coast (away) and GWS who are both in the top three to finish the season.

"The bottom line is they just don't handle big occasions. They're in there without beating a top-nine side, that's almost being there by default," Lyon told SEN on Monday.

“Sydney got what they deserved because they’re a great footy side who know how to win and know how to be there at September at the right time of the year.