Quite correct actually. Parra, Dogs, Souths, Dragons & (maybe) Tigers should really be powerhouse clubs up there with Essendon, Collingwood & Carlton but they are not, they are struggling in an oversaturated market.
The other Sydney clubs aren't on the same level as the big five. I'm certainly not suggesting that all of the rest of them get axed but we could certainly start by moving the Roosters to Central Coast and Dragons to Wollongong. These two teams will create more room in Sydney for the others but still maintain a presence in the NRL and still play plenty of games in Sydney for their fans to attend (and could also sell away memberships in conjunction with the other Sydney clubs). The Dragons and Roosters could play one heratige match in Sydney each plus the ANZAC match at Allianz also.
Once this has happened you have seven Sydney clubs. I would bite the bullet and introduce a major stadium policy which moves all clubs to one of the three major venues in Sydney; new Parramatta Stadium, new ANZ or new Allianz. It is time to move into the future. All clubs that have embraced ANZ (even in it's current configuration which is not great for viewing) have increased their crowd averages. We might think that the dogs have ''poor crowds'' of 15k at ANZ but the fact is that if all games were played at Belmore their average would be much less over a full season. I think you would find the same would happen with all clubs (including Manly) if you made the decision to play at one of the three new stadia once built.
So there we go - we have consolidated NSW (Newcastle, Central Coast, Sydney (only 7 clubs all playing out of brand new, state-of-the-art stadia) & Wollongong. No damage to the game, no teams relegated but the Bears are not required.
Any Sydney clubs that can't succeed from then on should be demoted to the NSW Cup and they will have no one else to blame but themselves - this is not a forced demotion, any club that finds themselves in this situation after:
- NRL grants that are 130% of the salary cap
- the NRL capping player and football department spending
- enforcing best practice management at clubs
- getting a new stadium
Then they simply don't deserve a spot in the top flight or they are just not popular enough to be in the NRL. We can then move on with developing a new market like Perth. I think what you fail to see is that the best of your beloved Sydney clubs will benefit too by reducing numbers in Sydney.