Royal AM, the KwaZulu-Natal-based Premier Soccer League (PSL) team owned by Shauwn "MaMkhize" Mkhize and her son Andile Mpisane, is facing a deepening crisis. The club's financial troubles, coupled with FIFA sanctions and the recent postponement of a league fixture, have thrown its future into serious doubt. The situation escalated dramatically this week when players were sent home from training, raising serious questions about the club's ability to continue playing.
The immediate trigger for concern was the abrupt cancellation of training on Tuesday. Players arrived at the Pietermaritzburg clubhouse only to be told to leave, with no official explanation given. This followed the announcement of three upcoming league fixtures, including a match against Chippa United in Port Elizabeth on Saturday, 11 January 2025. It remains unclear whether the upcoming matches against Orlando Pirates (22 January) and Stellenbosch FC (4 February) will proceed as scheduled.
The postponement of the Chippa United match was officially announced not by Royal AM, but by Chippa United chairman Chippa Mpengesi. In a statement released on Monday, he expressed disappointment, stating: "To our supporters, Chippa United Football Club announces with disappointment that our scheduled fixture against Royal AM, set for 11 January 2025 at 17:45 at Nelson Mandela Bay Stadium, has been postponed by the league with no given reason. This decision, made by the Premier Soccer League (PSL) at the last minute, comes after all necessary arrangements, including logistics and venue preparations, had been finalised." The PSL has yet to publicly explain the reason for the postponement.
These outstanding debts have resulted in a FIFA-imposed transfer ban, preventing Royal AM from signing any new players since the January 1 transfer window opened. A source close to the club explained the precarious situation: "The PSL is in a predicament at the moment. How do they pay the team their monthly grant when their tax clearance is not in order?" The source also highlighted the club's relegation battle, currently sitting 15th in the 16-team league.
The club's financial woes were brought into sharp focus late last year when SARS and police conducted raids on MaMkhize's properties in La Lucia and Sandton, as well as the Royal AM clubhouse in Pietermaritzburg. Movable assets, including luxury vehicles, were seized during these raids. Another source commented: "As much as the team is in trouble with FIFA for owing their former players, they are also facing relegation from the Betway Premiership."
Adding to the club's problems is the unresolved FIFA case involving Ricardo Nascimento. After failing to reach an amicable settlement, Nascimento took his contract dispute to FIFA in 2023. FIFA ruled in his favour, awarding him R600,000 (effective September 2023, with 5% annual interest). Royal AM's failure to comply led to a three-window transfer ban imposed on 15 January 2024.
Pedro Felipe Gomes da Silva, partner at RA Law firm representing Nascimento, confirmed: "The transfer ban remains active. However, with the three-window transfer ban lapsing, there is a points deduction penalty possibility as the next disciplinary measure, which could lead to relegation. To confirm, nothing has happened for the past month in terms of communication from the club, so the case is still active just like the transfer ban."
Further complicating matters is a claim by Nascimento's agent, Marcelo Robalinho, for unpaid commission (6%) on the transfer from Mamelodi Sundowns. Royal AM also faces a significantly larger claim from Samir Nurkovic, following a lost appeal at the Court of Arbitration for Sport (CAS). The CAS award mandates Royal AM to pay Nurkovic approximately R10.5 million (as of November 2024), a fraction of the initial R15.8 million claim related to his two-year contract.
The failure of Royal AM to address these financial and legal issues leaves the club teetering on the brink. The postponed match, the halted training, and the looming threat of points deductions paint a bleak picture for the future of this once-prominent PSL team. Repeated attempts to reach Royal AM for comment were unsuccessful.
Meanwhile, the Premier Soccer League (PSL) is giving the Royal AM matter its full attention but cannot comment on the specifics of what action is being considered, CEO Mato Madlala said.
TimesLIVE reported that the league is concerned by developments at the KwaZulu-Natal club but not at panic stations as it seeks the best way forward after Royal owner Shauwn Mkhize fell foul of the SA Revenue Service (Sars).
It is understood a curator has been appointed to look into Mkhize’s financial affairs as she allegedly owes Sars a R40m tax debt through her family trust. Players at the club have gone on strike as their salaries in December were paid late, resulting in the club being unable to honour its Betway Premiership fixture this weekend against Chippa United.
Sars has reportedly indicated further steps, including liquidation, may be a possibility for Royal.
“Member club business I do not discuss. It’s all out there, documented, that the league has given Royal a postponement for the weekend and we are going to inform the public about what will happen,” Madlala told TimesLIVE on Wednesday.
