Great to see another competition emerging! :D
In my opinion, the first proposition seems a better option, as it gives more creative freedom. I prefer a crest + kit format as well.

defiitely first....much more interesting...for the 2nd proposition competition you will see a lot of boring designs ...like the manchester united devil in blue...or chelsea lion shoting a cannon..

The first suggestion is definitely the best - we can imagine the new creations in a world where the city's teams already exist, whereas if you're mashing up two existing teams it gets a bit too 'fantasy' for my liking. For instance, say we had to design a team for Rome, it would be cool if we had to come up with a new team that was very different from Roma and Lazio

I would choose the first alternative. I do not like the idea of mixing the colors or the story of two teams, better create a new out of scratch! ;)

OK, I see that first idea is more suitable for you. Of course it will be a crest designing competition for sure, but how do you feel about creating kits in it? Do you think it should be crest+kit from beginning, or maybe making a crest would be a first step and then based on new crest idea - part 2 with kits? Or maybe we will have crests only competition but a winner as "a prize" can show as whole brand with kits (and then maybe after few rounds a clash for all the winners with full sets)? I'm listening, give me some feedback...