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It's not just an increase in capacity, the stadium needs modernising, as Johnny says the facilities are 100 years old and they have actually had to reduce the capacity of the South Stand over the last year because of safety issues. I agree with what you're saying about larger stadiums, but I think that applies more to the clubs that are building sub-20k stadiums, Headingley will be 25k which is big enough IMO. The Super League attendance record is only 25k, it's not like Australia where RL is the dominant code and hyped matches can attract massive crowds. The redeveloped Headingley could still hold internationals, with Elland Road available if a larger capacity is required.it seems like quite a big and expensive process for a 3000 seat increase. I wish they would build one with a capacity over 25k so they could host internationals instead of the usual hull, wigan and huddersfield. I believe the matches in leeds would be the best attended ones. Also for matches with Bradford or Hull, they could even get 30k to these games if the stadium was big enough. RL needs to move forward, not limit itself like this.
I see there's a space issue at one end, then why not make one of the side stands (maybe the one on the right) a two-tier stand (and build underground parking if you're worried about losing all those spaces).
i know i know, all this requires money, but surely you'll get a return on investment long-term, it would become the 'go-to' venue for many high-profile matches.
In answer to your question about two-tier stands, the one behind the posts does have two-tiers. The stand you suggested is the South Stand, which is famous for being one of the largest terraces in the world, while the North stand is shared with Headingley cricket ground, which is a Test venue. I don't think it would really be possible to build another tier on either of those stands.