The small town in Illinois where I have family has a high school with a proud small-school football tradition. Lots of winning seasons, tournament success, etc. But over the years they continued to have decline in enrollment that obviously affected participation in, and success of, the football program. So it seemed possible solutions were:
1) Eliminate the football program entirely.
2) Consolidate the high school with another neighboring high school.
3) Co-op with a neighboring small high school in similar circumstances.
They obviously chose option #3. The football program hasn't reached the heights it was in previous decades, but it is competitive. And those increased numbers are keeping it that way for now. It seems to be a compromise that has worked well for both communities.