What it needs is... ... a reasonably small stand with the option to build on top when needed. A la St Marys and the Madjeski.
If Rowing's quote is 'the club are looking to use the cup money towards rebuilding the West Stand.' then it may mean the money will be banked ie. not spent. Then one day, it will be used towards rebuilding the West Stand.
They should spend 500k or so on sorting the West Stand that is there out. Nothing that can't be fixed. Rest of the money can go on the squad.