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Standing stadium capacity vs seated capacity?

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I managing Hyde and the stadium has ~5k capacity but only ~1k is seated. I am averaging 2.5k in league 1 (by far the bottom of the league in terms of attendance, 5th on the table though).

If i ask for stadium expansion will the board take into account that just converting the stadium to seated (without any added capacity) might boost attendance?

Does the game differentiate between seated and standing only capacity?

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