Since I don't know a lot about clubs in general, I would ask where is the money coming from? If it is primarily sponsors, I think you have to figure out what the sponsors want. Do they want the best elite team in the area, or do they want to support the sport for as many people as possible? If it primarily from members, then again, I would ask - do they want to be part of an elite team, or do they want to be part of a team that does more for up and comers?

I'm not sure the two levels can coexist with the disparity in funding you have now. I would think that if you leave it the way it is now, some other team will offer those things you can't to the up and comers and you won't have a pipeline to fill the 1 and 2 slots.

Good luck!