Royal AM faces expulsion from the Betway Premiership and severe financial turmoil due to a massive tax debt and ongoing legal battles, putting its future in jeopardy.

The future of Royal AM, the South African football club owned by businesswoman Shauwn “MaMkhize” Mkhize, hangs in the balance as the team faces potential expulsion from the Betway Premiership due to escalating financial woes.

The club’s troubles have intensified following a significant intervention by the South African Revenue Service (SARS), which has taken control of Royal AM’s operations in an effort to recover an alleged R40 million tax debt.

In November 2024, SARS officials, accompanied by the South African Police Service, conducted raids on properties linked to Mkhize in Durban and Pietermaritzburg.

These actions were part of a broader investigation into alleged tax evasion, leading to the appointment of Jaco Venter as curator to oversee the club’s financial affairs. As a result, Royal AM’s bank accounts were frozen, severely impacting their financial stability.

The financial strain has had immediate repercussions for the club’s personnel. Players and staff did not receive their December 2024 salaries, leading to unrest and a reported strike.

Training sessions were halted, and the team’s scheduled Betway Premiership match against Chippa United on January 11, 2025, was postponed.

The Premier Soccer League (PSL) announced that Royal AM’s fixtures would be suspended “until further notice,” citing the club’s precarious financial position.

In a statement, Mkhize acknowledged the challenges, expressing regret over the unpaid salaries and emphasizing efforts to resolve the situation.

“It has always been the ethos of Royal AM to prioritize the well-being of our personnel, and we remain dedicated to upholding that principle despite the current challenges,” she stated.

The club’s management is reportedly working with the appointed curator to secure the necessary permissions to release funds for salary payments.

Compounding the club’s difficulties is a FIFA-imposed transfer ban resulting from a dispute with former striker Samir Nurkovic. Nurkovic claims he is owed approximately R12 million following the termination of his contract in 2022.

Royal AM’s appeal to the Court of Arbitration for Sport was unsuccessful, leaving the club unable to register new players.

This restriction has led to the unusual situation of club chairman Andile Mpisane, Mkhize’s son, stepping in to play regularly in the Betway Premiership.

Meanwhile, the PSL executive committee has been engaged in intense discussions over whether to officially expel Royal AM from the league.

If expelled, the Betway Premiership would continue with just 15 teams, a scenario that has sparked debates within South African football circles.

The club’s absence has already caused disruptions in competitions such as the Nedbank Cup, where their scheduled match against Milford FC was canceled, automatically advancing the latter to the next round.

Last week, Royal AM made an urgent court application to force the PSL to reinstate them, but the attempt reportedly failed, leaving them in limbo.

With their financial crisis deepening and no clear resolution in sight, the club’s future remains highly uncertain. The possibility of Mkhize selling Royal AM has been raised in some football circles, but no official confirmation has been made.

As Royal AM teeters on the brink, the situation serves as a stark reminder of the financial challenges facing some South African football clubs.

Whether Mkhize can steer the club away from disaster remains to be seen, but for now, Royal AM’s fate appears to be hanging by a thread.

Shauwn Mkhize, also known as MaMkhize, is a prominent South African businesswoman and reality TV personality. She is best known for her high-profile lifestyle and successful ventures, including her ownership of Royal AM.

Mkhize’s journey into football began with her acquisition of the club in 2021, after purchasing the Premier Soccer League (PSL) status of Bloemfontein Celtic.

Her club’s rapid rise to prominence, however, has been marred by financial difficulties, culminating in the current crisis.

The South African Revenue Service (SARS) is the country’s national tax authority responsible for collecting taxes and enforcing tax laws. In this case, SARS intervened due to Royal AM’s substantial tax debt, amounting to R40 million.

SARS is empowered to take control of a company’s assets if taxes are not paid, which led to the freezing of Royal AM’s accounts and significant disruptions to its operations.

The Premier Soccer League (PSL) is the top-tier professional football league in South Africa, featuring 16 teams. Royal AM’s potential expulsion from the league would significantly impact the current season.

Founded in 1996, the PSL is one of Africa’s most prestigious football leagues, attracting large viewerships and providing players with opportunities to showcase their talents internationally.

The Nedbank Cup is one of South Africa’s premier football cup competitions, featuring teams from various tiers of the national football pyramid.

Royal AM’s suspension from the tournament has seen smaller clubs like Milford FC advance unexpectedly, which can have major implications for the competition’s structure and progression.

Andile Mpisane, the son of Shauwn Mkhize, serves as the chairman of Royal AM. He is also an active player for the club, stepping in to play regularly due to the club’s inability to sign new players because of the FIFA-imposed transfer ban.

FIFA imposed the ban due to unresolved disputes over unpaid wages owed to former players, Samir Nurkovic and Ricardo Nascimento.

The ban prevents the club from registering new players, further compounding the club’s financial and operational difficulties.

These key figures and institutions play a crucial role in understanding the ongoing crisis at Royal AM and its potential fallout for South African football.