It was said once that its good to have same size stadium as your fans.
With that said - there are many factors about stadium.
Number of people at the home game = your fans + opposing team fans + random spectators.
Higher you are in the tournament - more people will come to see your game = higher revenue.
Ex.:
I have 1,000 people stadium but only have 600 fans.
In the final I play somebody who had 1500 fans.
My stadium will cap out at 1000 fans = 100 game money.
If I had a stadium of 2500 seats, I would probably filled it in that game.
Here is how:
600 of my fans + 1500 of opponents fans + 400(more or less) random spectators = ~2500 people watching (250 in-game money)
Hope I explained it well