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Ok mate, its just a idea!! ill do my best!
Would a country side have the cash and the numbers, hell yeah either kalgoorlie or southwest would differntly have the cash and theres a few clubs in the southwest and out kal way.
Would a merger club work - they work out in the country not sure about in the the city i picked these two side as they are close togther and both both small clubs theres no use putting say lions with paly or simalar that would achieve nothing the big club just swallows up the small one.
3rds 4ths and u18s - there people who get paided to this shit i am sure you sort something out easy enough.
YES- It would be hard to stop players leaving a relegated club. I think a rep team for players just in this comp is a start , loyalty , a little cash would go a long way and more loyalty
Hope that answers it for you