Without any knowledge whatsoever of the situation, I'd have to ask some questions...number and quality of players is only one consideration in the decision of how many teams to field. Other questions would be, are there enough quality coaches, facilities, equipment, time, space, etc. available to do a good job of developing three teams?
Quality of overall experience for the players is a factor in any conscientious decision. Again, I have no idea of any of this applies in the specific situation you describe, but if resources are limited, it could be argued that providing a good, quality experience for one team is better than spreading everything too thin and providing a lesser experience for three.
