The Minister for Sport is examining how to discontinue the Government's financial support for the Football Association of Ireland after he rebuffed an attempt by the football body to defuse the crisis over its appointment of an "interim" chief executive.
The Taoiseach, Mr Ahern, has backed Mr O'Donoghue in the confrontation, which worsened yesterday when the FAI refused to advertise the posts of chief executive and finance director before the end of the year.
As letters were exchanged between the Minister and the FAI, it emerged that the discontinuation of the State funding of the body was under "active consideration" in Mr O'Donoghue's Department. The association has received €8 million in direct funding since 1999, with €60 million in capital funding going to soccer clubs.
It is also understood that the Government is prepared to reconsider the FAI's involvement in the national stadium project at Lansdowne Road if the association does not put reform measures in place soon.
Mr Ahern instensified pressure on the FAI when he told reporters in Limerick that the association "should just do what the Minister wants". Mr O'Donoghue called for the two positions to be advertised.
The Taoiseach said administrative arguments were not helpful to him personally "when the Sports Minister is having to be involved in a battle" with the FAI.
"If I'm fed up of anything, it's getting to know new general secretaries of the FAI. It's hard to keep up with them," he said.
The FAI president, Mr Milo Corcoran, had sent a letter to Mr O'Donoghue yesterday in which he was said by FAI sources to have adopted a "conciliatory" tone.
However, it is understood that the letter did not meet the Government's request for a commitment to advertise the jobs. A reply was issued to that effect from Mr O'Donoghue.
The Minister said on RTÉ Radio yesterday that State funding for the FAI was in doubt for as long as it refused to implement a reform programme set out in the Genesis report two years ago.
"I'm left walking away from all of this wondering what it's all about. I just can't understand for the life of me why the FAI simply will not carry out the simple requests of the Genesis report," Mr O'Donoghue said.
"They know themselves that the report has to be implemented. John Delaney, who has been appointed as interim chief executive officer subject to him agreeing to take it, has stated on the public record that he wants the Genesis report implemented.
"So you wonder why in the name of goodness people just won't be mature enough to go off and implement the thing."
The head of Sports Council Ireland, Mr John Treacy, has written to the FAI asking whether the body will undertake to comply with the Government request.
Mr Treacy indicated that the council's liaison committee might not meet the FAI at a scheduled meeting next Tuesday in the absence of such a promise from the FAI.