THE Swans' efforts to grow AFL in NSW have had the paradoxical effect of creating the monster they've always feared.

Swans chairman Richard Colless has been unabashed about the menace of a second Sydney team, repeatedly stating that his club would not support the establishment of a local competitor until the Swans had etched a stable foothold in possibly the world's toughest sporting market.

Yet, by staging games at Telstra Stadium (now ANZ Stadium) with success in recent years and fostering grassroots expansion outside the club's traditional fan base in the city's north and east, the 2005 premiers have lit the fuse for AFL chief executive Andrew Demetriou to get his way and establish a team in Sydney's west before 2015.

The Sun-Herald revealed in March 2006 that secret talks were being held between the AFL and Blacktown City Council about basing a side at Blacktown Olympic Park. The story exposed that a $20 million fund had been established to upgrade the 2000 Olympics training venue. About $15 million came from the NSW Government, $2.5 million from Cricket NSW, and $2.5 million from the AFL.

Swans CEO Myles Baron-Hay responded by saying the club's balance sheet was weak and a turnaround would not occur "in the short term". Colless said last year that a second Sydney team would "be an act of lunacy and treachery … [which] would undo all the good work we've done."

But despite the concerns, the concept yesterday received strong support from NSW/ACT AFL general manager Dale Holmes, Blacktown mayor Leo Kelly and ANZ Stadium boss Ken Edwards.

Holmes urged the Swans to see the positives and hinted that it was actually their initiatives that paved the way for a second Sydney team.

"We've worked hard with the Swans to build the game in western Sydney and build the Swans name," he said. "We'll continue to do that. But ultimately, the next quantum leap will require us to have two sides in Sydney. It will be a good thing. It will create natural competition. The crowds at Telstra Stadium have demonstrated that there's growing interest and shown us that there is opportunity.

"We're seeing people from areas where they hadn't previously followed the game, committing and attending games consistently. The question now is how to get to the next level. The view is that it means we've got to bring in a second team."

The new club will play games at ANZ Stadium but will be based at Blacktown, a rapidly growing area long dominated by league.

Kelly said a team there would boost the local economy and provide a vast talent base.

"The AFL is being smart," he said. "It's no surprise that they're coming to the most populous area of NSW. They've got a built-in incubator to produce future champions.

"I would say to the Swans that there is definitely room for a second team. They will still maintain their supporter base but also provide competition.

"It's not a one-stop shop for anybody. The Swans shouldn't hold on to the attitude that they've got the whole Sydney base."

Kelly will meet with Demetriou again in Melbourne in two weeks. "The AFL is committed to it and it's only a matter of time," he said.

The Swans are contracted to play at least three games and finals each year at ANZ Stadium until 2016. Edwards said an intra-Sydney derby at the Olympics venue would be huge.

"Since 2002 we've hosted Swans games and worked with the club and the AFL to build a presence in greater western Sydney," he said. "Having three crowds over 60,000 last season showed how successful the work has been and we see more growth into the future.

"Our view is that Sydney is massive market for Australia's four brands of footy and big enough for everyone to grab a healthy slice of the action."