Royal AM Faces Possible Expulsion from PSL Amid R40 Million Tax Debt

The South African football landscape stands on the verge of a major shake-up as the Premier Soccer League (PSL) prepares for a crucial meeting on Wednesday to determine the fate of Royal AM in the Betway Premiership.

The Durban-based club, owned by businesswoman Shauwn “MaMkhize” Mkhize, is battling severe financial troubles, with a staggering R40 million tax debt owed to the South African Revenue Service (SARS). The financial instability has placed the club in a precarious position, raising concerns about its future in the top-flight league.

Royal AM’s troubles deepened following a legal battle that culminated in a ruling by the Pietermaritzburg High Court on May 9, 2024. The court granted SARS a preservation order on the assets of the Shandi Trust, a move that effectively put pressure on the club to clear its outstanding obligations.

Further complicating matters, a separate High Court ruling mandated the sale of Royal AM to settle its debts, forcing the PSL to consider the implications of such a drastic measure. The looming decision has sparked widespread debate about the club’s future and its potential impact on the league.

Amid growing uncertainty, speculation is mounting that Royal AM could be sold and possibly relocated to Bloemfontein. This would mark a full-circle moment, as MaMkhize previously acquired Bloemfontein Celtic in 2021 before rebranding it as Royal AM. Some football fans have expressed hopes that a new owner would restore the historic club to its original home.

Royal AM’s troubles are not limited to financial woes. The club has endured a disastrous season, winning just once in 11 matches, alongside five draws and five losses, leaving them anchored at the bottom of the PSL table with only eight points.

The financial crisis has also led to the indefinite postponement of several fixtures, frustrating fans and raising doubts about the club’s continued participation in key competitions such as the Nedbank Cup. Their last competitive match took place on December 29, 2024, when they suffered a 3-0 defeat to TS Galaxy. Scheduled encounters against Chippa United and Orlando Pirates have since been delayed, further compounding their struggles.

The PSL’s National Soccer League (NSL) handbook outlines strict regulations regarding club membership. Article 5.4 states that if a team is withdrawn before playing every other club at least once, all of its results for the season will be nullified. Additionally, Article 10.16 allows the PSL executive committee to terminate a club’s membership if it fails to resolve financial disputes.

If Royal AM is expelled, the repercussions will be significant, affecting not just the club but the entire league, including players, staff, and fans. The decision made in the coming days could set a precedent for how the PSL handles financially troubled clubs in the future.

With the stakes higher than ever, South African football awaits a resolution that could redefine the league’s stability and governance moving forward.

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