Transferring S/PDIF Data from Receiver to Teensy

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I have a working LED board that displays the FFT from data read in via USB. I've recently come across a receiver (http://www.audioreview.com/product/amplification/a-v-receivers/harman-kardon/avr7200.html and was thinking about making some changes so that I can connect a phone to the receiver (via coaxial digital input) and drive both a speaker system and the LEDs from there. I'd pull the coaxial digital output from the receiver to a Teensy so that it can go through the FFT and be displayed via the LEDs (this would all be going in parallel to a speaker system connected to the receiver itself).

Based on this post https://forum.pjrc.com/threads/45394-SPDIF-Input-and-Output, my understanding is that I'd need something along the lines of this: https://www.mouser.com/datasheet/2/76/WM8804_v4.5-1141948.pdf between the coaxial digital output and the Teensy but once that's accomplished I could read it as I2S. That being said this project is definitely beyond my realm of knowledge so I wanted to check my basic plan before I started jumping down rabbit holes and buying things that I don't fully understand.

My main questions:
1. Does this strategy make sense and will it work (I realize there's probably ways to accomplish all this without an expensive receiver like this but it was given to me and it will just be gathering dust otherwise so I figure I may as well use it)?
2. Is there likely going to be a significant enough delay from the coaxial output -> converter -> teensy -> FFT -> LEDs that there will be a noticable lag between what I hear and what I see (I realize some of this will depend on how efficient my code is but I'm not sure if the converter would potentially cause a noticable delay)?
 
The WM8804-based board that I linked in the thread that you referenced above supports both coax and optical S/PDIF input (as well as coax and optical S/PDIF output). It's reasonably priced and is available form Amazon, eBay, and Sure Electronics.

There will be no "delay" that a mortal human being will notice.
 
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