SKY Television told the Government a month ago it was prepared to back away from its controversial deal to show the Republic's soccer home internationals on subscription channels, it has emerged.
The declaration was made during a meeting in early September between Sky executives and the Minister for Communications, Marine and Natural Resources, Mr Ahern, and departmental officials.
However, the satellite broadcast company later told the Football Association of Ireland that it was not going to quit the multi-million euro deal.
"It is not clear whether they were using a withdrawal as a negotiating tactic," a Government source said last night.
The Government has been angered by Sky's decision to screen next Wednesday's international match with Russia on Sky Sports rather than on Sky One, which is available to far more households.
"But we will definitely have this sorted out by the time the next home international comes around next June. Of that, there is no doubt. And we will deal with the retrospection issue, if necessary, in a way that will be legally binding," a Government source said.
Meanwhile, the FAI was told yesterday that the Government would give it a clear decision about the future of the National Stadium project in Abbottstown by the end of November.
The issue of the Sky contract was not raised at yesterday's meeting between the FAI and the Taoiseach, Mr Ahern, the Minister for Finance, Mr McCreevy, and the Minister for Arts, Sports and Tourism, Mr O'Donoghue.
The meeting was sought by the FAI in the wake of the Government's decision not to spend Exchequer money developing Abbottstown, but, instead, to invite tenders from the private sector. Following the meeting, the FAI treasurer, Mr John Delaney, said the association would shortly submit applications for €20 million in State funding for soccer projects in the Republic "and would expect them to be paid".
Exchequer revenue goes directly to the clubs and associations "and is vital to the development of facilities and resources for the thousands of young people who participate in sport in this country," he said.
The FAI and the Irish Rugby Football Union will be taking "a pro-active approach" towards any proposals to develop Abbottstown: "By the end of November, we will have a degree of certainty about whether the stadium is on, or not," he said.
A number of property developers have expressed interest in building the stadium, the Minister for Arts, Sport and Tourism said last night. However, he indicated that the Government did not see itself bound by the earlier deal with the FAI, which granted €60 million in State funding in return for the association's pledge to use Abbottstown.
