It just doesn't make sense.
If it was a settlement to avoid legal action, why would the FAI have had to pay it back (until it was written off on account of Ireland failing to qualify for the 2014 World Cup)?
If it was a loan, then what about the supposed merits of the mysterious legal case and why do the FAI say the only condition was confidentiality?
It can't be both a loan and a settlement, can it?