They can direct the Scholarship boys on where to play which is fair enough. As for the others, the prospect of a possible Scholarship, plus a strong team with excellent coaches, not to mention access to gym and medical facilities and assistance with getting into courses, is a package which is pretty tough for your average club to compete with. So whilst "pressure" is not the right word, there are certainly a number of pretty strong "incentives".
As for a clearance, unless a player is unfinancial with their club a clearance is automatic.
From what I can gather the AFL felt that they could not refuse Sydney Uni an U/18 side, and in theory there is no bar on where you can get your players from. However, they do have the right to grade them as they see fit, so presumably felt that putting them into Challenge Cup might encourage the out of town kids to stay with their own clubs.
I'm not sure how a kid who has been playing Premier Division seniors with a club like Campbelltown would benefit in their development by then playing Challenge Cup U/18's the following year.
As for a clearance, unless a player is unfinancial with their club a clearance is automatic.
From what I can gather the AFL felt that they could not refuse Sydney Uni an U/18 side, and in theory there is no bar on where you can get your players from. However, they do have the right to grade them as they see fit, so presumably felt that putting them into Challenge Cup might encourage the out of town kids to stay with their own clubs.
I'm not sure how a kid who has been playing Premier Division seniors with a club like Campbelltown would benefit in their development by then playing Challenge Cup U/18's the following year.

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