I reached to the answer by process of elimination:
Popularity up -> means D for TP > S
now, fewer players enter.
Some clubs -> retain current players
this is an indicator that popularity is up.
well, the commentator does not take into consideration that the overall demand is not the same as Demand for talented players. The clubs might be paying more for the players, but that does not mean that all the players are talented.
A. The fact that clubs are making judicious provisions for an adverse situation that they consider a possible future threat does not mean that this adverse situation already exists.
what is this answer choice talks about? We are concerned with the fact that even if the clubs try to retain current players, the popularity of the sport is not up. This answer choice doesn't help to explain this. A is out.
B. The propensity of clubs to retain their players does not mean that the clubs were apathetic to players’ financial needs earlier.
this is irrelevant. no explanation that would show the flaw in the commentator's argument that the popularity is up.
C. Establishing that demand would exceed supply does not necessarily imply that supply would not exist at all.
this has already been mentioned. Fewer new players enter ice hockey. thus, there still is a supply. C is out.
D. A decline in the number of new entrants into the clubs does not imply that such a decline is unprecedented.
Even if it happened before, we cannot prove that the popularity is not actually increasing.
E. An increase in the fee paid to the current players would not guarantee better performance by these players.
looks good. if the clubs pay more regardless of whether these players are not performing well that doesn't mean that the demand for the talented players is up. So far, E is the best from all.