In 1991, Balme left Norwood and became the inaugural coach of the new Woodville-West Torrens Football Club, formed from the merger of Woodville and West Torrens at the end of 1990. His success there proved that a merged entity could work at a time when AFL clubs were facing the prospect of merger to stay viable in the new, fully professional era. Eventually, he succumbed to the lure of coaching in the AFL and was appointed to lead Melbourne Football Club for the 1993 AFL season.