Good question and I agree it's confusing but no, I believe he's reffering to both adult and senior level i.e. a nationwide team.
From my view, and I'm happy to defer to Burnsie's more extensive knowledge on this, what is stopping them is the underage structure. Klub Kildare are one of the "created county" clubs that gave a pathway to the national level for underage players.
If their senior men's team was to play anywhere other than the LOI, I'm sure they'd be a lot of junior and intermediate clubs questioning why their underage age teams can't play at a national level too.
That was part of the reason why the Kerry Academy sides had to incorporate themselves separately from the KDL even before the Kerry FC adult team was formed, the more pressing element being the legal necessity of keeping the boards of both entities separate, even when some individuals would still serve on both.
Looking at the potential list of teams that have been mentioned through various social media outlets and are now part of the FAI's process to accept 20 teams.
I have created a possible location of these teams,
Leinster
Dublin - 6 Clubs
Kildare - 1 Club
Carlow/Kilkenny - 1 Club
Meath - 1 Club
Munster
Cork - 2 Clubs
Limerick - 2 Clubs
Tipperary - 2 Clubs
Waterford - 1 Club
Connaught
Galway - 2 Clubs
Mayo - 1 Club
Ulster
Donegal - 1 Club
Nice 1 m8.
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