@Reality, there is two ways I see it and I will use that Geelong example above to explain.
Scenario 1: The new league can open it up to allow any Associations to enter any teams in any divisions as long as they can afford to enter them and qualify according to the facility criteria etc...
That may leave smaller Associations still without a Big V team and the bigger Associations remain the powerhouses of the Big V, also the best players may remain in that larger Association which in turn will call the shots and control more of the whole pathway system in its region.
This can be a good thing when it comes to money for referee development, providing for the best facility, or the pathway within that Association being less of a jump than say Youth league - Premier league with a senior team in between.
Scenario 2: The new league keeps its Big V rule, disallows any Association to enter more than two Youth League Teams (men and women) and the same in only one senior Division, therefore in the case of a Geelong (can be elsewhere) potentially 20+ players of Big V level will be looking for a game somewhere else or choose not to play.
Let's say a nearby Association (like Bellarine, Colac or Surf Coast) decide to enter Big V, they have a stadium they can use to facilitate the Big V requirements and get coaches, officials etc... organised to a satisfactory level.
Now the talent stays in the general area, another smaller Association has the ability to grow and offer its teams and clubs a pathway within to aspire to Big V. Locals can come and support a new team and those players who were previously with the larger Association can still play, albeit with a smaller one but if everyone is happy where is the problem...?
I may be wrong with this concept and my thoughts on why and how the new competition is being designed, who knows what the bigger plan is, but the short term view may be similar to Scenario Two!