A second Brisbane side is the likely destination for an expansion side, but Smith has raised the question as to whether the NRL wants to prioritise revenue over quality and talent in the competition.
The 433-gamer believes that there isn't enough talent out there to be able to fill another 40-man NRL roster by 2023 or 2024.
The 38-year old spoke on SEN 1170 The Captain's Run to explain his thoughts and concerns on a new expansion side.
"The hot topic this year has been about the quality of the competition," Smith said.
"Some of the rosters across the NRL have been found to be a little bit skinny.
"So, is there enough talent to spread across the competition? Possibly not right now."
The future immortal raised the names of a pair of clubs to highlight the imbalance the game was currently feeling in regards to roster management.
"We’ve been talking about the situation at the Bulldogs and the Wests Tigers and what’s happening with recruitment and rosters," Smith continued.
"Well, you’ve got great rosters at a handful of clubs while a few others are quite skinny.
"Can we afford to spread what we currently have across another team of 40 players? That’s my only concern."
The all-time great can definitely see the positives of bringing in a new team as it would help boost the league from a financial standpoint, but Smith again brought up the dilemma of quality and talent versus revenue, and claimed that he wanted the leaders of the NRL to get their priorities straight before making a decision.
"Does it help bring in more broadcast dollars and other avenues of revenue? Yes it does," the Queensland legend said.
"But at the cost of the quality of the competition? I don’t know, that’s what Peter V’Landys and Andrew Abdo need to weigh up.
"Quality of the competition versus bringing in more revenue, I don’t know."
The Brisbane Firehawks, Dolphins and Jets are the three potential expansion teams who pitched to the competition on Tuesday.
The NRL is yet to make a decision on if and when they will have an expansion side, and have not announced a date at this stage.