Popular businesswoman and reality TV star Shauwn 'Mam’Mkhize' Mkhize loses Royal AM Football Club to SARS

The glitz and glamour of Shauwn "Mam'Mkhize" Mkhize's reality TV life have collided head-on with the harsh realities of a protracted legal battle with the South African Revenue Service (SARS).

The fallout has left her Premier Soccer League (PSL) team, Royal AM FC, firmly in the hands of the taxman, under curatorship following a court order. The once-celebrated club, known for its flamboyant displays of wealth and on-field successes, now faces an uncertain future.

The drama unfolded following a November 2024 raid on Mam'Mkhize's properties, including her luxurious La Lucia home north of Durban. SARS seized assets, including luxury vehicles, as part of an ongoing investigation into alleged tax evasion. The reported amount owed to SARS exceeds R40 million. This action directly led to the freezing of Royal AM's bank accounts, resulting in the non-payment of salaries for players and staff in December 2024.

The situation escalated when the KwaZulu-Natal Local Division of the High Court granted a preservation order and a search and seizure warrant in the case involving the Commissioner of SARS versus Shauwn Mkhize and others. This legal action culminated in the appointment of Jaco Venter as curator to oversee Royal AM's assets and operations. The club is now effectively under the control of SARS, a dramatic turn of events for a team that only recently enjoyed a period of relative prosperity.

Mam'Mkhize herself acknowledged the dire situation, releasing a statement confirming the curatorship and the resulting salary issues.

She stated: "As many are aware, the club is currently under curatorship following a preservation order obtained by SARS. While this has resulted in the temporary appointment of a curator, Mr Jaco Venter, to oversee the club’s assets and operations, we want to assure all stakeholders that Royal AM remains committed to resolving this matter as swiftly as possible. The club’s management team, led by our CEO and General Manager, has been working diligently with the curator to secure the necessary permission to release funds for payments. We have always upheld this principle despite the current challenges."

The statement offered little reassurance to players and staff facing financial hardship.

The club's management, however, is exploring all available options to avoid liquidation. A source within Royal AM revealed to Sowetan that the club is attempting to leverage the ownership of Andile Mpisane, Mam'Mkhize's son and a player for the team, as a means of shielding the club from the consequences of the SARS investigation. The source explained: “The club's argument is that Andile is not the subject of any tax investigation, so the club should be immune from the dispute Sars has with MaMkhize.” This strategy hinges on the argument that the club's financial affairs are separate from Mam'Mkhize's personal tax liabilities.

However, another source within the club expressed a more defiant stance, indicating a willingness to challenge SARS in court. This source asserted: “The fact is the club doesn't owe Sars.” This suggests a belief within the club that the legal action against Mam'Mkhize is being inappropriately extended to Royal AM. The club has formally requested that SARS unfreeze its accounts to access the R2.5 million monthly grant provided by the PSL, funds desperately needed to pay outstanding salaries.

The impact on the players has been significant. The South African Football Players Union (SAFPU) stepped in to clarify the situation, contradicting reports that players had "downed tools." SAFPU president Tebogo Monyai explained that the players had been instructed by the club not to return to training after the December break, pending resolution of the financial crisis.

He emphasised: “The players were told by the club not to come back to training after December break until the matter is resolved. It is not like they [Royal] don't have money to pay players…the club don't owe Sars. So, as it is now, the management is trying as much as possible to resolve the matter internally. The main priority is to make sure that players get their money.”

The implications for Royal AM extend beyond the immediate financial crisis. The club faces the potential for further sanctions from the PSL. A failure to resolve the situation and fulfil upcoming fixtures could result in point deductions or even expulsion from the league. This is a particularly serious threat, given that the club already faces a FIFA-imposed transfer ban and a potential point deduction for failing to pay former player Samir Nurković the R15 million owed to him. This previous FIFA ruling highlighted the club's existing financial irregularities. The PSL's acting CEO, Mato Madlala, declined to comment on the situation when contacted.

The contrast between Royal AM's current predicament and its recent past is striking. Mam'Mkhize's reality show showcased a life of extravagant luxury, including a memorable incident where she and her son, Andile Mpisane, publicly handed out cash to Royal AM players after a PSL match victory.

This public display of wealth now seems a distant memory, replaced by the harsh reality of a club fighting for its very survival. The future of Royal AM remains uncertain, hanging precariously in the balance as the legal battle with SARS continues.

If SARS successfully liquidates the club, the owners will face a two-year ban from acquiring another team. The potential consequences are significant, underscoring the gravity of the situation facing Mam'Mkhize and her football club. The once-celebrated team now faces a fight not only for financial stability but for its very existence within the PSL.