That is news to me.
You are misusing the word "right". They have a duty not to make stupid decisions. They can't just represent Redcliffe. They should never play a game there.
Really it's news to you that the club has been called Redcliffe Dolphins since inception about 80 years ago? They obviously represent more than just Redcliffe in the NRL but that's kind of irrelevant, it's not that uncommon in world sport.
Fremantle Dockers don't play in Fremantle
Both New York NFL teams play in New Jersey
The Washington NFL team plays in Maryland
Moana Pasifika represent Samoa and Tonga from Auckland
Pretty much no AFL team in Melbourne play in the suburb they are named after, probably ditto most London soccer clubs.