Perhaps there's a way of engaging them too, though? Like asking them what exactly it is that makes them proud of the Knights or of being a Knights fan/ Novocastrian? Then when they answer, asking them what evidence they see of that in the current set-up of the organisation or the results that have come since 2001? Something along the lines of- we understand they're proud to be represented at NRL level, but are they proud of being represented by THIS? Ask them to imagine, for a moment, that the Newcastle Jets' fortunes are what had happened to the Knights, play-by-play (Champions to twice wooden-spooners, a passionate core supporter base to a dwindling crowd divided and demanding answers etc). See what they think, and then highlight how damn close the Knights are to being a carbon copy of that penthouse to the outhouse story. Ask them, again, if that's what they want to associate with?
We can't wake these people up from their 'Yay team' slumber with a torch light in their faces. We'll have to do it by turning up the dimmer switch patiently. It's worth the effort IMO, even for the chance that we might see the sunlight again...