The Department of Community, Culture and Leisure is denying the Sulby Glen Hotel is being unfairly singled out, over the need for a crash barrier to be placed outside the premises during TT practice sessions and races.
Chief executive Nick Black says he understands it's being done because of concerns over spectators leaning too far over the rope and being too close to the riders.
The owner of the pub, Rosie Christian, says a compromise has been reached, but she had been threatened with closure for the fortnight unless she complied with organisers' demands.
Mr Black says he isn't in a position to comment about ultimatums being issued:
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