The match costs would come down to an extent with a lower gate, but yeah apart from maybe a one off game or two it's not worth it.
I'd be interested in where the players come from as well. Would a proper team attract anyone connected to Cov, ex players or academy kids? Or would you start with a bunch of randoms? You'd need to pretty much guarantee promotion in the first season or two at most.
Rather different examples, but Aldershot got Steve Wignall in as manager when they set back up, he was a 'legend' of the previous club. Fiorentina meanwhile, kept Angelo Di Livio when they plummeted to a re-birth. Helped with the shift between past and present.
Don't think Wimbledon did initially, although they've got connections now of course.
John Relish was the first Newport manager when they reformed.
Managers are the usual links, Di Livio's profile as a player was high enough him 'staying' was a story in itself. Helps bash that connection over the head, although obviously you don't want to appoint an utter moron!
David Phillips-esque level would be a decent choice, or Trevor Peake. City players with a decent enough standing post-city that they shouldn't stuff up a job at that level, but offer an obvious, high profile connection to the 'past'.