The FAI acknowledged yesterday that Ireland's failure to qualify for the World Cup finals in France next summer will cost the association something in the region of £500,000.

However, the association rejected speculation that the 32 aggregate defeat by Belgium in the play-offs for the finals would precipitate a cash crisis. Commenting on press reports that they were headed for financial problems, an FAI spokesman said that even after provision is made for substantial grant aid to its affiliates, the FAI still expects to make a profit of £250,000 in the current financial year.

He said that the FAI has a number of long-term sponsorship agreements in place and that these are not affected by the Republic's failure to qualify for France '98. The association, he said, was fully confident of the support of existing and potential sponsors.

In the course of the current season, the FAI have spent £297,000 on development grants, £291,000 on operating grants to affiliates and £175,000 in funding Ireland's under-age international programme.

"I trust these facts will reassure all our members, sponsors and supporters of the financial well being of the Football Association of Ireland," said Brendan Menton, the association's honorary treasurer.

The operating profit in the current year will be boosted by a £400,000 windfall from Ireland's participation in the World Cup play-offs. The big losers, however, are the players and technical staff, who stood to share in an a projected £1.75 million bonus scheme if Ireland qualified for the finals.