Shauwn Mkhize The SARS curator has issued a public notice announcing the auction of troubled PSL side Royal AM in a bid to recoup a reported R40m in tax owed by owner Shauwn Mkhize. Photo: BackpagePix
Image: BackpagePix
Royal AM’s future in the Premier Soccer League looks set for doom after the league’s executive committee resolved to terminate the club’s membership.
The decision, however, is not final yet, as it must now be voted on by the PSL’s board of governors, who will determine whether to uphold the recommendation.
The PSL, led by chairman Irvin Khoza and acting CEO Mato Madlala, held a meeting on Wednesday to discuss the situation, which has been ongoing for several months.
A circular sent to club owners explained the reasoning behind the Exco’s decision, highlighting Royal AM’s failure to meet its obligations to the league, misrepresentation of key information in a renewal application, and an unauthorised share transfer that went against the NSL constitution.
Royal AM’s issues date back to 2023, when they were sent to FIFA by striker Samir Nurkovic for unpaid salaries.
However, their issues peaked in January when the South African Revenue Service (SARS) placed the club under curatorship in an effort to recover a R40 million debt linked to a family trust associated with club president Shauwn Mkhize.
With financial uncertainty surrounding the club, the PSL suspended all of Royal AM’s fixtures, as they were no longer in a position to participate in the remainder of the season.
The appointed curator attempted to resolve the situation by selling Royal AM’s Premiership status, but the deal ultimately collapsed after the prospective buyer failed to meet the vetting requirements, and could not produce the necessary deposit to finalise the sale.
The PSL had initially held off on taking further action, waiting to see if a sale could still go through before the end of April.
However, with no progress on that front, the Exco has now taken steps toward expulsion.
Before their suspension, Royal AM had played just 11 league matches, leaving 19 unplayed fixtures with only two months remaining in the 2024/2025 season.
This made it increasingly unlikely that they would be able to resume participation, even if their financial situation were resolved.
As a result, the PSL also withdrew the club from this season’s Nedbank Cup, citing time constraints and Royal AM’s inability to field a competitive squad.
The next step in the process will be a vote by the PSL’s board of governors, who will now convene to determine the club’s future.
If they agree with the Exco’s recommendation, Royal AM’s membership will be terminated, and they will no longer be part of the PSL structure.
The decision is expected to bring an end to months of uncertainty, finally providing clarity on the fate of the Pietermaritzburg-based club.
The expulsion of Thwihli Thwahla would have overall ramifications on the entire Premiership table, with some positions expected to be altered as well.
If Royal AM are indeed booted out of the PSL, all clubs that had already played them would be stripped of the points collected against them, which is expected to have an impact on how the table looks from top to bottom.
The season would also finish with 15 teams, which would mean each side would have played 28 games (instead of 30) at the end of the season.
And lastly, there would be no automatic relegation, but rather, the side that finish in 15th spot would head to the promotion/relegation playoffs as expected.