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It really shouldn't matter where they go to school and/or if that school has a team.
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Why do they play at one or two venues. Considering teams like Rockingham and Kalamunda have 1st Grades in the Kwik Cup they can make it a event running the whole day.
It works in Sydeny. When I was at randwick the 4th grade colts would start off the day. And it would finish with 1st Grade. Over the day the crowd would grow and the atmosphere and the rugby community.