My own opinion here, so it is worth what you are paying for it.
Many years ago, my oldest 2 sons played Club Sports...basketball and baseball, and my daughter Softball. This was my observation from those many summers traveling the Midwest.
Kids that play club sports are at a SERIOUS advantage when their high school season starts. These kids have seen a level of competition that is nearly impossible to replicate at the structured Class C2 High School level. These kids came into direct competition with D1 scholarship players as well as future D1 scholarship players. They stand in the box and look at an 80+ MPH fastball being delivered from the hand of a 14 year old. They attempted to take charges from 15 year old boys that literally jump right over them in the process of force feeding the rim.
It costs a great deal of money to participate in club sports.
The majority of players that my kids teamed up with and faced went to parochial schools, although my kids did not.
I am sorry in advance to anyone that does not agree with my opinions here, but the problem is not recruiting or scholarships within the parochial schools. Our public schools are not at a disadvantage because of the recruiting of athletes. Our public schools are at a disadvantage because of the lack of money. Household money, as well as establishment funding. The money that it takes to develop their children to compete at that State Championship "next level", as well as the money that it takes to build and staff training facilities.
I personally do NOT believe that parochial schools recruit kids with superior athletic ability. I believe that they ATTRACT kids with superior athletic ability. I believe that they ATTRACT families with the "means" to make the necessary commitment to perform at the State Championship "next level". And when that pipeline opens up, it is extremely challenging for a public school to plug it.
If you are an Omaha Metro parent with "means", and your son wants to be a great wrestler, wouldn't you be tempted by Skutt? I sure would. If you were a parent from say Brainard, and Jr is tipping the scales at 200 lbs as he finishes his 8th grade year, wouldn't you be tempted by Aquinas? I sure would. Norfolk Catholic? Lourdes? St Francis? Kearney Catholic? Jr is probably going to play for a State Title, and likely will not otherwise. This is what I mean by "attracting".
All of us Public school parents have failed to open up our own pipeline. We have failed to be a part of building something that kids in the area want to be a part of. We have gotten our asses kicked and kicked pretty good.
If we want to change it, we have to start at the Elementary level. We need to do elementary basketball camps 3 nights a week all winter long. We need to haul our 5th graders to Omaha every weekend to play in a basketball league. We have to load them up all spring and summer and go to basketball tournaments...and play in the Gold Division with the best competition we can find. And when they start getting really good, we have to travel farther and go find someone to kick our ass to get better. We as communities and families have to eat sleep and breathe this shit because I can PROMISE you that our Parochial School counterparts are doing exactly that. This is not about scholarships and recruiting. This is about commitment to building something special...something that everyone wants to be a part of. When we have done this, the kids from our surrounding communities will be wanting to come and be a part of it as well. And guys, it works. I have done it. And the teams I have done it with still hold many individual and team records in our public school. These teams all had All State players, college players, and even future HS coaches on them.
Do I believe that Parochial Schools have an advantage? Damn right I do. I believe it is an advantage that they created themselves. I also believe that it is an advantage that we can neutralize and actually overcome, but it is not easy.
As far as a multiplier...I don't really think it will make much difference from D2-D1. D1 to C2, or C2 to C1. I believe that the re-classed teams will likely rise to the top of their new class as well. The other potential re-classifications I really don't know enough about.