Do our university's have the desired locations to house a team each (built in supporters and merch sales) plus we can offer young players scholarships. Syd Uni for Sydney, UTS for north shore. UWS for the west in nsw, how do other states go?
I actually think a university based system could work, but the universities involved would have to invest heavily in building support for the team around the campus.
The competition would have to be done 'right'. That means afternoon games, buses to and from games, $3 dollar beers and very cheap tickets. The merchandise would have to be well designed, and there would need to be a social media presence. The ARU is yet to prove they are capable of anything like this......
In Queensland only UQ, Bond and maybe QUT would be able to put out teams that would actually draw a crowd. If the smaller uni's were involved their games would have to be played as curtain raisers to reds games.
I think best system would be to have a 1st division with the big universities in it, and then have a second division with the smaller ones. Have promotion and relegation between the divisions. Should get the RMC involved as well.
The comp would have to make the universities enough money in gate takings and new admissions to justify 30 odd scholarships per team. Not as ridiculous as it sounds considering the team would be a glorified advertising exercise and these unis are prepared to spend bucketloads on tv ads each year.
Ideally I see such a comp played during the super rugby. Then after the super rugby you would have a club championship like the one mooted in this thread. Provides a development pathway and a 3rd teir - without the need to really manufacture supporters (I realise this is not true for all unis).