Premier Soccer League (PSL) club Royal AM, owned by controversial businesswoman Shauwn Mkhize, could have new owners within the next two weeks. The South African Revenue Service (SARS) has officially placed the club up for sale to recover some of the R40 million owed by Mkhize in unpaid taxes. This announcement was made public on Thursday, with offers being called for the purchase of the embattled KwaZulu-Natal club.
Royal AM’s financial troubles have been well-documented, with the club failing to pay its staff and players. They have played just 11 matches so far this league season, sitting at the bottom of the table. Additionally, the club was expelled from the Nedbank Cup for failing to fulfil fixtures.
How to Bid for Royal AM
If you’re considering placing a bid, be prepared for both financial commitment and risk. The auction process requires bidders to submit their offers via email to pg@bidderschoice.co.za. Along with the bid, a deposit of R1 million must be paid to the SARS curator. It’s essential to prove that you have the financial capacity to meet the requirements before placing a bid.
The deadline for bid submission is Friday, March 14, with the announcement of the successful bidder set for Monday, March 17. However, securing the club may not immediately resolve its issues. Any new owners will inherit existing debts, including R15 million owed to Serbian striker Samir Nurkovic, which led to FIFA imposing a transfer ban on the club. The ban will only be lifted once the debt to Nurkovic is settled.
The Club’s Financial Troubles and Legal Issues
Royal AM has faced a series of financial issues that have left them unable to meet their obligations. A ruling by the KwaZulu-Natal High Court ordered the club to disclose potential buyers to a SARS curator in a transparent process, and the auction marks the next step in that process. The club owes R40 million in taxes to SARS, while also failing to pay wages to their players.
The debt to Nurkovic, who won a case against the club in FIFA for unpaid wages after his contract was terminated, remains one of the major issues. This R14 million debt has resulted in FIFA banning the club from signing players, a sanction that will remain in place until it is paid.
What New Owners Must Consider
The sale of Royal AM presents both an opportunity and significant challenges for potential buyers. Not only will they inherit the club’s debts, but they will also need to navigate the financial instability left behind by the current owners. Additionally, the new owners would need to secure the approval of the PSL’s executive committee to allow the club to continue competing in the 2024/25 season and avoid relegation.
The Impact on the PSL and Future Prospects
The ongoing issues surrounding the club have already affected the PSL’s scheduling, and the new owners will need to act quickly to turn the situation around. While the sale may bring an end to one chapter of Royal AM’s troubled saga, it also marks the beginning of a new era, fraught with financial risks and liabilities.
With just a week left until the deadline for bids, interested parties must act fast to secure the opportunity to purchase the club. However, they must be prepared for the significant challenges that come with acquiring a club burdened by debt and ongoing financial issues.
Related article: Royal AM Kicked Out of 2025 Nedbank Cup Amid Legal Turmoil
