When in doubt.... follow the money. It usually leads to the root of all action. That works well in the business world, however; i am not so sure that applies across the board concerning athletics.
Most people running these clubs are highly competitive people and want to win. You wont find many of them on Trump's "The Apprentice" or wearing a suit and tie to the office. Club mergers, recruiting etc. are typically about forming a stronger competitive club on the state, regional, or national scene.
Clubs merge to eliminate competition and to grow stronger to compete more successfully against other clubs in the region.
Clubs hold tryout to select the most competitive players for their Premier teams to win state championships.
Clubs recruit players from other clubs to make themselves stronger, not to pad the coffers with additional fees.
Clubs offer "scholarships" to talented players whose families otherwise couldn't afford the fees. This is not humanitarian aid, they want the best players on the field come game time playing for them.
The term "vicious cycle" comes to mind. Clubs take actions to make themselves more competitive, which in turn allows them to win more tournaments or state championships, which in turn makes better players and coaches want to join that club, thus further improving the talent on the team, making them more competitive, and on and on it goes.
Granted it does take money to make the world go around, but i believe the primary motivation is to WIN, and with talent, money also follows.
