Fail to acknowledge a share of the spoils

I believe the answer is:

cut

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'fail' is the definition.
(I know this)

I don't understand how the remainder of the clue works.

(Other definitions for cut that I've seen before include "dropped" , "Reduction; piece of meat" , "Sever, slice" , "reduced" , "Saw" .)

I've seen this clue in The Irish Independent.

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