There is probably to many sydney teams in the comp. If you were to start a new 16 team nrl Comp today you'd probably have 5-6 teams from sydney. But if you were to cut 3 sydney teams today you'd alienate and lose thousands of nrl fans. The theory that if you cut a team those followers will just support a neighboring side has already shown to be untrue. Norths fans aren't suddenly fans of the Eagles, souths fans didn't become roosters fans when they were excluded. Would tigers fans support eels or bulldogs if they were cut? Would sharks fans start following the dragons or the rabbitohs? Mergers have also shown to be failures. Tigers are struggling and bears/Eagles was a disaster. Would a bulldogs/eel merger work? Would a rabbitohs/sharks merger work? Depending on which 3-4 sydney teams you cut you could be losing a fan base of upto a million people.
A perth team would be a a step forward for the game for sure . But losing a sydney team would be a step backwards. Why would we take a step backwards before we took that step forward. Wouldn't it make sense to have a solid base to step forward from.
A lot of the doom and gloom in here is from people panicking about afls expansion. There expansion is done, they have no where else to grow. In the 80s the afl and nrl were city comps of Melbourne and sydney respectively. Since then afl has grown the game to perth, adelaide, Sydney, GC and Brisbane. In the same time the nrl has expanded to wollongong, Canberra, newcastle, Brisbane, GC, new Zealand, north qld, melbourne. We've also had an attempt at perth and adelaide. 3 of the AFL's expansion clubs are now expensive blackholes, nrl made the tough decision to cut some expansion clubs to get the game back in order after super league. To say the afl is doing better on expansion is very debatable. The fact that the nrl gets higher viewership, especially from the regionals, shows we are just as widespread around the population of australia as afl Is. If the afl has to eventually cut their 3 failing expansion clubs because they rushed them, while the nrl has got its house in order first and expanded with clubs on their own merit who can stand on their own 2 feet then the nrl will have easily won the expansion game