The Department of Education, Sport and Culture says a Douglas school was paid £10,000 to rent out part of its playing fields during TT.
A Freedom of Information request asked if a tendering process had been undertaken for the land at St Ninian's High School.
In its response the department said it had been a standard rental arrangement and so hadn't gone out for bids.
It added safeguards had been put in place to ensure the letting didn't disrupt the day to day running of the school.
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