Government delivery body Sports NI turned down the Belfast City Council proposals to construct a new cycling velodrome and upgrade the Mary Peters running track in the city after they briefly missed the deadline.
The applications were submitted on behalf of the local authority by private consultants FGS McClure Watters.
The council had applied for£40m for the velodrome and a further£9m for the track upgrade, which would have accounted for 75% of the construction costs.
It would have paid the remaining quarter.
The local authority has said it is now seeking legal advice.
Report from Construction News