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

Or:

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?