Royal AM’s future appears increasingly precarious following a recent court ruling involving SARS. The Betway Premiership club is grappling with a staggering R40-million debt owed by owner Shawn Mkhize, creating significant financial instability that jeopardises the club’s very existence. Following a brief legal battle, the court has ruled that the club must be sold to meet its financial obligations.
While a small number of staff returned to work after receiving overdue wages, many players remain reluctant to resume training. The looming threat of liquidation has created an atmosphere of uncertainty and anxiety among players and staff. In response to the escalating situation, the PSL took the unprecedented step of suspending all fixtures involving Royal AM, leaving fans frustrated and searching for clarity.
A curator assigned to oversee the club’s affairs was set to present a crucial report to the court, outlining options for either liquidation or sale. The report’s recommendations could pave the way for Royal AM to be placed on the market. Meanwhile, there is hope that the PSL will allow time for a sale before making any decision on expulsion.
Mkhize has been actively trying to prevent both liquidation and a sale, but the judicial ruling appears firm, particularly given the curator’s findings. Following asset seizures by SARS due to alleged tax irregularities, Royal AM has faced severe financial challenges, disrupting essential salary payments.
As dissatisfaction grows regarding the club’s off-field conduct—especially from its headline sponsor, Betway—the PSL is set to hold an urgent Board of Governors meeting to discuss Royal AM’s status. Compounding the issue, the club’s on-field performance has mirrored its financial woes, leaving them at the bottom of the standings with only eight points from 11 matches.