Agreed to repeat:

(1) - just add 1 line sponsorship to each page view (with a link) no ads though, they can advertise on their own site. would solve the monitary shortfall in no time.

They will need location & category control info but that can be very easy. So local small mom & pops can sponsor. Like your local tavern for the Rugby Blog. Or your local hair salon for a Glamor blog. Or local junk yard for a scrappers blog