Marion Local is a public school. I am betting he is talking about Delphos St Johns, in the same league as Marion, the MAC. Or perhaps Newark Catholic, which has also been a small school power. Delphos will probably not be affected by this much. They very rarely have players from outside their town. Hell, they don't even get all the good players in Delphos.The public school in town, Jefferson, has had a decent team the last few years. DSJ just has an enormous percentage turnout for football, mainly because of the tradition around the football team.
At least they didn't pass that horrible version of this that was proposed a few years ago, where schools would be penalized in a similar way for just being successful. In that version, advancing so far in the playoffs gave you points. If you acquired a certain amount of points over a few years you would get moved up in division.