They stated that there was really nothing they could do as the culture and demographics of Leichhardt/Balmain was out of the football club's control.
Gobbso mate - your lecturer is feeding you unadulterated cattle manure. The whole premise of the argument that rugby league clubs can only survive in blue collar areas is demonstrably bullsh*t of the highest order. Ever heard of the Roosters? The Broncos aren't the powerhouse they are because they're followed by a massive population of wharfies. These two (and all successful clubs to a greater or lesser degree) are successful because they have tapped very strongly into the local Business community. And guess what - there is a very strong business community on the peninsula (not to mention in that big bunch of buildings just across the pond from Peacock Point).
No, Balmain (and for that matter Western Suburb's) failure was not due to changing demographics, but due to the utter inability of the club's administration to make the club an attractive promotional vehicle for business people. They didn't do enough to promote themselves to grow this side (the most important side these days) of their business, they didn't treat their business clients well enough, or work hard to provide the extra value to these clients that would make the value of their investment obvious and so struggled to hold onto them. They saw this money as 'sponsorship' (ie charity) and thought it was their god given right without having to get off their butts and fight for it. The changing demographics just gave those responsible (or irresponsible as is more correct) a quick and easy excuse for their failure. It may have salved their consciences but excuses don't make a succesful organisation in any field of endeavour.
The club's future was in it's own hands and it was sitting on them. They (yes and Wests, or Norths, or the Gold Coast for that matter) could create a prosperous future for themselves if they were prepared to do what it takes. A very large part of what it takes is good marketing and all the things that go with it (product design, client management etc). Excuses and blaming circumstances are for losers. Opportunity exists all around, the successful just prove it. If this sort of defeatist, 'woe is me', 'I have no control over the future' crap is what they teach you in a sports marketing course then I'd respectfully suggest you should transfer to a real marketing course.