WordPress MU

I'm looking to develop a blog system for our local sports clubs, where posts from one blog are displayed on another. The idea is to act as a central hub for all local sport. It contains 3 levels:

Each sports club has it's own blog, where the club administrator can post news, cancellations, results etc for their club (they can only post to their own "blog").
There is then a "blog" for each sport which just pulls all the latest posts from each club of that sport (but it should also be possible for admin to make a standalone post to this blog).
Lastly, there is the "main page blog", which lists the latest posts from all sports. This is the page that people will see when they visit the site (and again, it should also be possible for admin to make a standalone post to this blog).

So the structure would look a bit like this diagram.

After looking through the wordpress plugins area a bit, the plan is to use WPMU and the sitewide tags plugin.

Just wondering if anyone more experienced can foresee any pitfalls before I begin, or anything else that might suit better?

Comments welcome, thanks :)

SWT will only pull from all blogs to one blog.

If you want that nesting, you could use a multi-site plugin, and SWT on each of those to do what you want.

yes, it's possible, yes I've done it on another site. I'd give the link, but they don't use it that way any more.