It highlights tho that the Sydney market is finite. There's no room even for 2 AFL teams...one of them (giants) is going to struggle to stay afloat without AFL assistance. Whilst the same is true with NRL...far too many Sydney teams, making each other all weak as businesses, sporting franchises. The biggest clubs are the one or two teamers like Eagles, Dockers, Broncos, Crows. That's the way of the future. Should've always been that way when setting up a national comp in both sports...create max two new clubs in their respective capital cities.
But they're all kind of conpeting in the one landscape of sport. Eagles, Broncos, Dockers, Crows, Power, Dolphins, Titans, Cowboys, Storm...the one or two team for an entire city approach. They will outlast, will only get bigger. The mass of AFL teams in Melb and mass of NRL teams in Syd are up against it in the long term.
Whittling down to a 12-14 team national league (for both codes) will be hard, and fans will be lost, but the clubs will eventually be more stable and have room to grow when fans from the respective cities rejoin the sport.
Less teams also means better standard of conpetition as only the very best will make it. Would also mean a second tier comp could work talent-wise. Propping up clubs in "expansion" regions