The Premier Soccer League (PSL) has suspended all Royal AM fixtures until further notice, adding to the club's woes stemming from a significant tax debt and a court-ordered curatorship.
The PSL's decision follows a series of events that have cast a shadow over the club. On 9 January 2025, Royal AM informed the league of its inability to fulfil its fixture against Chippa United FC due to difficulties arising from the appointment of a curator.
The PSL Executive Committee (ExCo) held several meetings seeking assurances that Royal AM could meet its future fixture commitments. A promised joint letter of comfort from club management and the curator, confirming the resolution of these issues, never materialised.
“No such letter of comfort has been forthcoming and Exco has been left with no alternative but to cancel the PSL fixture – Royal AM vs Orlando Pirates at Harry Gwala stadium at 7.30pm and to suspend all other Royal AM fixtures (Betway Premiership and Nedbank Cup) until further notice,” the PSL stated in an official release. The ExCo will meet again on 24 January to hear representations from Royal AM.
The club's financial difficulties are deeply intertwined with Mkhize's personal tax issues. She faces a R40 million tax debt resulting from alleged non-compliance with South African Revenue Service (SARS) regulations. This has led to the freezing of Royal AM's funds, resulting in the non-payment of salaries in December 2024. The club is currently under curatorship and faces potential sequestration.
Adding to Mkhize's troubles, the Democratic Alliance (DA) in KwaZulu-Natal is pushing for the termination of a controversial sponsorship agreement between the financially struggling Msunduzi Local Municipality and Royal AM. The R27 million, three-year deal, intended to boost tourism in Pietermaritzburg, has drawn significant criticism.
DA councillor Reggie Khanyile submitted a motion calling for the municipality to review and end the sponsorship. “The municipality cannot continue supporting a business facing serious legal proceedings, including allegations of tax evasion,” Khanyile stated.
He argued that maintaining the sponsorship damages the municipality's reputation, citing Royal AM's breaches of contracts with former players, potential FIFA sanctions, and the risk of insolvency.
Khanyile highlighted the municipality's pressing service delivery needs, stating, “Collapsing infrastructure has left residents without consistent access to water and electricity. The DA strongly believes that the R27 million allocated to Royal AM could be better utilised to address these critical issues and support the youth of Msunduzi through the maintenance of sports facilities and the funding of sports and youth programmes.”
He added that the party would appeal to the provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (CoGTA) to intervene.
The sponsorship deal, previously defended by the ANC, has been labelled an unreasonable contract that effectively made the municipality Royal AM's cash cow. The situation is further complicated by reports that SARS is seeking additional documents from Mkhize regarding almost R38 million in outstanding taxes.
Royal AM's last PSL match was a 3-1 defeat to TS Galaxy on 29 December 2024, leaving the team in the relegation zone. The team's scheduled match against Orlando Pirates on 23 January has been cancelled due to the PSL suspension.
The club's financial struggles have reportedly led to senior players seeking transfers. News24's attempts to reach Mkhize for comment were unsuccessful at the time of publication.
