In 2002, Fianna Fáil again failed to obtain an overall majority and formed a coalition government with the Progressive Democrats. O'Donoghue, in what was seen as a demotion, was appointed Minister for Arts, Sport and Tourism. He was involved in the finalisation of details for the rebuilding of Lansdowne Road. In mid-2004, Ahern announced that he would be reshuffling his cabinet in September, prompting speculation over O'Donoghue's cabinet position, and a possible move to another portfolio. O'Donoghue, however, retained his post.
