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Site Navigation: Gauteng News | Sports

Sports

Royal AM on the Brink: Financial Woes, FIFA Sanctions & PSL Expulsion Looming

By
Rethabile Nyelele
Published: 10 February 2025,
7 Min Read
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Royal AM on the Brink Financial Woes, FIFA Sanctions & PSL Expulsion Looming
Image: News24
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The Premier Soccer League (PSL) is reportedly on the verge of expelling Royal AM from the top flight of South African football. This comes after a series of financial and managerial issues, placing the club’s future in jeopardy. With discussions among the PSL Executive Committee intensifying, an official announcement regarding the potential expulsion is expected soon. If implemented, this would leave the 2024/25 Betway Premiership season with only 15 teams instead of 16.

Contents
  • A Promising Start That Turned Sour
  • The Financial Collapse
  • Royal AM’s Absence From the Pitch
  • A Club in Crisis
  • A Final Blow?
  • Key Timeline of Events for Royal AM:

A Promising Start That Turned Sour

Royal AM’s journey in the Premier Soccer League began on a high note when the club, under the ownership of businesswoman Shauwn Mkhize, acquired Bloemfontein Celtic’s top-flight status in August 2021. The team, rebranded as Royal AM, had a strong debut season, finishing third in the 2021-22 campaign and qualifying for the CAF Confederations Cup.

However, the club’s success was short-lived, with mounting financial problems and internal disputes leading to administrative control being placed over the club in November 2024. This included the appointment of a curator by the South African Revenue Service (SARS), following the businesswoman’s alleged R40 million tax debt.

The Financial Collapse

The club’s financial issues escalated throughout 2024, with two significant transfer bans imposed in January. The bans stemmed from unpaid salaries to former players Samir Nurkovic and Ricardo Nascimento, leading to FIFA and the Court of Arbitration for Sport (CAS) siding against Royal AM’s attempts to overturn the sanctions.

By January 2025, the situation worsened as the club failed to pay players’ December salaries, prompting a player strike and the suspension of fixtures, including their match against Chippa United. Royal AM issued a public apology, citing their curatorship under SARS, but the financial turmoil only deepened.

Royal AM’s Absence From the Pitch

The PSL took decisive action on January 22, 2025, suspending all Royal AM fixtures due to their ongoing financial difficulties. This included matches in both the Betway Premiership and the Nedbank Cup. The team had already missed several games, including a scheduled clash against Orlando Pirates, due to the club’s failure to provide the necessary guarantees about its financial and operational stability.

A Club in Crisis

The current situation seems to be the culmination of a turbulent period for the KwaZulu-Natal-based club. What started as a dream to bring top-flight football to the region has now turned into a nightmare, with Royal AM facing the very real possibility of expulsion from the PSL. The team’s troubles are compounded by the lack of clarity from the club’s ownership, with Shauwn Mkhize’s financial woes spilling into the management of the team. As the PSL continues its deliberations, the future of Royal AM remains uncertain.

A Final Blow?

For Shauwn Mkhize, the expulsion of Royal AM from the PSL could be the final blow to her footballing aspirations. After a promising start in the top tier of South African football, the club’s administrative and financial problems have overshadowed any initial success. With a looming expulsion, it appears the once-thriving Royal AM may be on the brink of collapse.

As fans and sponsors await the PSL’s final decision, the fate of the club hangs in the balance, and its future in South African football is more uncertain than ever.

Key Timeline of Events for Royal AM:

  • August 21, 2021: Shauwn Mkhize acquires Bloemfontein Celtic’s top-flight status and rebrands the team as Royal AM.
  • October 2, 2021: Mkhize gives out R200 notes to players as bonuses after a 2-1 win over Maritzburg United, sparking controversy.
  • November 26, 2021: Mama Joy Chauke, a famous Orlando Pirates fan, announces her switch to Royal AM, signaling the club’s rising profile.
  • May 23, 2022: Royal AM finishes third in their debut PSL season and qualifies for the CAF Confederations Cup despite a 3-2 loss to Mamelodi Sundowns.
  • October 2022: Royal AM terminates Samir Nurkovic’s contract after two months, leading to a dispute with FIFA over unpaid wages.
  • May 20, 2023: The club survives a relegation battle, finishing 11th in the 2022/23 season, only six points above the relegation zone.
  • December 29, 2023: Andile Mpisane, co-owner and son of Shauwn Mkhize, makes his full top-flight debut, drawing criticism for his performances.
  • January 15, 2024: Royal AM is hit with a FIFA transfer ban due to unpaid wages to Samir Nurkovic, preventing them from registering new players for three transfer windows.
  • January 24, 2024: The club faces another transfer ban after losing a dispute with former player Ricardo Nascimento over unpaid salaries.
  • October 11, 2024: Royal AM is expelled from the DStv Diski Challenge after failing to field a team due to the transfer ban.
  • October 14, 2024: The Court of Arbitration for Sport (CAS) rejects Royal AM’s appeal to overturn the FIFA transfer ban.
  • November 2024: The South African Revenue Service (SARS) takes control of Royal AM amid financial struggles, including a R40 million debt.
  • January 7, 2025: Royal AM players go on strike, refusing to return from the festive break due to unpaid salaries.
  • January 8, 2025: The club releases a public apology for unpaid December salaries and cites SARS curatorship as the cause of the delay.
  • January 22, 2025: The PSL suspends all Royal AM fixtures due to ongoing financial issues, starting with their match against Orlando Pirates.

Related article: Tools Down: Royal AM Players Halt Training Amid Financial Crisis

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