Poor News Ltd. No idea. Dumb logic.
Culling a Sydney club in the hope the others left will be stronger is misguided badly. Where are all the Norths fans & sponsors now? They aren't following another Sydney club. They are lost to the game.
The merged Wests Tigers draws crowds the same as Wests or Balmain did the 1990s. The merged team doesn't draw the combined total of Wests AND Balmain. So half of the old Wests and Balmain fans are lost to the game. Dragosn are the same story. Mergers in league work as 1 + 1 = 1, not 1 + 1 = 2 or even 3 (remember News Ltd in the late 1990s saying merged Sydney teams would rival the Broncos!).
Since the early 1990s when the NSWRL said Sydney could not support or fund the same or more league teams we have seen the funding, sponsors and crowds to support the Sydney FC, WSW, Giants and professional Waratahs. So despite what tje NSWRL and media said there was plenty of money but league let other sports get it.
The Sydney NRL clubs and the NRL just have to work harder and smarter. Manly should be mining all of northern Sydney from the Harbour Bridge to Palm Beach, Hornsby & across to Cherrybrook for sponsors & fans. That area is bigger population and business than another Brisbane team or Adelaide or Perth would get.