Blackpool chairman Karl Oyston has told fans that the South Stand will only be built if attendances improve.
The southern part of Bloomfield Road has been derelict since the old stand behind the goal was demolished in 2003.
Speaking at BBC Radio Lancashire's Championship Chairman evening, Oyston said it would remain a building site unless more home supporters turned up.
"It'll take 1500 extra fans for there to be any additional benefit other than to repay the loan to build the stand.
"If the supporters continue to back us and turn up in bigger numbers then we'll have to do something," he added.
Average league attendances this season have been around 8,500, which is 1,000 short of capacity.
I don't think we should take £400,000 from the playing budget to pay for a stand that arguably we don't need
Blackpool fan David Cottam was not convinced: "I can understand Mr Oyston's point but it's been noticeable there have been full houses recently. If we build the Stand Stand then more people can come in."
Oyston replied: "We've sold out less than half the home games in the home area this season."
The Blackpool chairman said the project was also dependent on finding business tenants to rent the South Stand.
"We need property backing and we need to rent the space but Blackpool is not a property hotspot right now.
"The South Stand will be built as and when it's right for the football business to build. I don't think we should take £400,000 from the playing budget to pay for a stand that arguably we don't need.
"I know we do need to progress as a club and it's top of our agenda, believe me, but it wasn't right to do it know."