There's no way the NRL are going to reduce team numbers, if anything expansion is still on the table.
In my opinion we need to get a national reserves grade sytem back in place, and make this competition secondary to the NRL, not a third string park footy competition like it is now. The NYC concept is fine, but it is too big of a jump from NYC to NRL for most players. NYC players have an attitude that going from that competition to the NSW cup is a demotion rather than the promotion it should be. Away from the big stage, away from the cameras and lights, away from the pre-NRL crowd, off to Ringrose Park in front of a couple of hundred people is hardly something for these young players to aspire to. "Put me straight into 1st grade coach or I'll sign with Manly".
Sad but true. And the only way to have a genuine reserve grade (with genuine adults capable of playing NRL if they have to) is to increase the size of the squad earning at least minimum salary.
At the moment only the top 25 are entitled to minimum salary, which means
at most eight blokes earning the NRL minimum will be lining up for the second tier competition. That's not enough to justify that comp being treated as genuinely second tier.
Every club has about 35 blokes on its fulltime squad, but ten of those will be earning less than the minimum salary and therefore probably holding down a job as well as playing fulltime. Most blokes hit a certain age (and experience level) and get jack of such a lifestyle, but it's these blokes that we need our up-and-comers playing with and against each week.
Basically the game needs to accept the concept of fulltime professional players who will only ever be good enough to be NRL backups. The game needs such players (mostly filling reserve grade teams) in order to help develop the game's future stars. The people who really need to accept it are the star players, because the funding for these 'reserve squads' will have to come out of the (future) salaries of the game's top earners. The catch-22 is that it is the game's top earners who are responsible for the majority of the game's revenue.
The game needs fulltime squads of 35 players all earning enough money that they don't quit football and get a real job. This is the only way to have a genuine reserve grade competition.