In theory it doesn't work because (and here is the part everyone forgets) the NYC is indentical to the NRL, therefore it is impossible to have a NYC team and not a NRL team.
On expansion - the NRL is far better then the AFL way of changing rules for new teams and giving them allowances, it's making it a unfair playing field to the other teams and its close to fraud.
The NRL makes areas that want a team come to them instead of plotting points on a map in places where the area doesn't want it. The Greater Western Sydney area went into shock when they heard they'll be getting a team. I can't wait to hear about their offices and home ground being trashed, oh wait their hoe grounds arent even in the greater western sydney area.
I think people are way too concerned about changing the NYC so it's not identical with the NRL, especially for just one year so two new teams can hit the ground running. If Bears and Reds get the nod next year they should definatley be fielding a Toyota Cup team the in 2012 no questions asked, if helps them establish their junior base early and unearth a few jems for their top squad in 2013.
Honestly does anyone think screwing the format of TC for one year is that bad for something that would obviously be for the better of the game? Personally I wouldn't give two sh!ts if now and then there wasn't a TC game to watch before First Grade and if it was different opposition, especially if I know the reasons behind it will help the game by giving a leg up in the establishment of two new clubs.
This shouldn't even be in question IMO.
Also I'd have no real problem with new teams being given a bit more under the SC for the first few years, it's not easy establishing new teams and the AFL know that. If the team sucks for a long time from the start it's a sports team with a tarnished refutation.