BY: Saneliso Mlambo
The South African Revenue Service (SARS) has emerged victorious in a court ruling against Royal AM, a Betway Premiership football club. The court has ordered the sale of the club to settle a staggering R40 million debt owed by club owner Shauwn Mkhize. This financial crisis has led to significant instability within the club, affecting players and staff.
Royal AM, based in Pietermaritzburg, has been embroiled in financial turmoil due to alleged tax irregularities involving its owner, Shauwn Mkhize. The club’s financial woes were worsened by the seizure of Mkhize’s assets by SARS, which froze critical accounts and disrupted salary payments. This led to a prolonged strike by players and staff over unpaid wages.
A curator was appointed to manage Royal AM’s affairs and present a report to the court outlining options for either liquidation or sale. The court’s decision to order the sale of the club was based on the curator’s findings, which highlighted the dire financial situation. The Premier Soccer League (PSL) has suspended all fixtures involving Royal AM, adding to the uncertainty surrounding the club’s future.
Despite the court ruling, Shauwn Mkhize is reportedly fighting to retain control of the club. A buyer has been identified, and the PSL is considering allowing time for the sale before making any decisions regarding expulsion. Meanwhile, players have cautiously returned to training after receiving overdue wages facilitated by the curator.
The financial crisis has taken a toll on the club’s performance, with Royal AM languishing at the bottom of the Betway Premiership standings. The uncertainty and anxiety surrounding the club’s fate have created a cloud of desperation among players and staff. The PSL is scheduled to convene an urgent Board of Governors meeting to discuss Royal AM’s status and potential expulsion.
The future of Royal AM hangs in the balance as the club navigates through this financial crisis. The court ruling and subsequent sale order have added to the challenges faced by the club and its supporters. The coming weeks will be crucial in determining the fate of Royal AM and its place in South African football.