a network in a network

Is it possible to set up a site with a network, with another network "under" it?

For example:
National News Network as the main site (pulling aggregated feeds from the states news networks)
-------State by State News Network
----------------Individual Web Sites for each city

Banana Sports Network
---Banana Basketball Network
--------Arizona Banana Basketball Network
---------------Red Banana Conference Network
---------------------Gila Monster Banana Team web site
---------------Blue Banana Conference Network
---------------------Cactus Banana Team web site
---------------------Rattlesnake Banana Team web site

And even if it is possible, would it make sense to set it up this way?