The Department of Community, Culture and Leisure has dropped plans for a media partner for the Villa Marina.
The idea, which was suggested to the DCCL by Manx Radio, was seen as a way to raise cash for the government.
A spokesman for Tim Crookall's department confirmed a number of organisations submitted proposals but, following a review, it was decided not to proceed with any of them.
It's being made clear that, for the idea to have gone ahead, the department would have needed a large cash payment, or to have been confident the partnership would lead to a big increase in ticket sales.
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