From Riches to Rags as Mamkhize's Millions Vanish: Royal AM Players Face Bleak Easter, Salary Crisis Deepens

Johannesburg – Royal AM players are facing a grim Good Friday as they remain unpaid for their March salaries, with uncertainty looming over a portion of their April earnings as well. The financial woes stem from the club being placed under the curatorship of the South African Revenue Service (Sars) due to monies owed by club owner Shauwn “Mamkhize” Mkhize to the tax authority.

The unsettling developments were brought to light by Tebogo Munyai, the acting president of the South African Football Players Union (Safpu). Munyai revealed the dire situation facing the players, highlighting the limited avenues available to them following Royal AM's expulsion from the Premier Soccer League (PSL).

The PSL's board of governors (BOG) on Thursday officially terminated the club’s membership, ratifying the executive committee’s decision after Royal AM failed to fulfil league and cup fixtures since the start of the year. This expulsion leaves players in a precarious position, with their contracts effectively nullified and their means of recourse severely limited.

Mkhize is currently embroiled in a legal battle with Sars, reportedly owing the taxman approximately R40-million. This financial dispute has had a cascading effect on the club, ultimately impacting the players who are now bearing the brunt of the situation.

According to Munyai, the players are owed more than just their March salaries. "All the players’ salaries for March have not yet been paid. There are players who were owed signing-on fees as well. Signing-on fees are not paid once off, they are paid in instalments. That money has not been paid, according to the club and the players. Royal AM was able to pay the players’ salaries for January, and the February salaries were only paid in March."

The situation reached a head last week when the players, who had been in camp, were informed by the club to return home until further notice. "The players were in camp until last week when the club called them to a meeting and told them that they must go home until further notice,” Munyai explained.

With Royal AM no longer recognised within the PSL structures, Safpu's ability to intervene on behalf of the players has been significantly curtailed. Munyai lamented the loss of the dispute resolution chamber (DRC) as a viable option.

“Previously, we were able to take the matter to the DRC, and if a player won a case, the league could attach the club’s monthly grant and pay the concerned player. We don’t have that avenue anymore. We are pursuing other legal avenues to get advice on how we can still claim the monies for the remainder of the players’ contracts.”

Safpu is now exploring alternative legal strategies to assist the players in recovering their outstanding dues and potentially claiming compensation for the premature termination of their contracts. The union is engaging with legal experts to determine the best course of action in this unprecedented situation.

Munyai outlined the potential outcome of the Sars curatorship, stating that liquidation may be pursued. “The curator said that he may run the process of liquidation and try to ensure that they recover the money, or some of it. If Sars recovers its money, everyone who is owed by the club will get a share from the amount that was recouped."

However, he expressed concern that even in the event of Sars recovering funds, the players may only receive a fraction of what they are owed. "The club no longer exists, and we are afraid that players may have lost everything,” he explained, painting a bleak picture for the affected footballers.

The decision to expel Royal AM from the PSL was made following extensive deliberations by the executive committee, which then presented its recommendations to the BOG. The BOG, comprising representatives from all 32 PSL and Motsepe Foundation Championship clubs, ultimately voted to terminate the club’s membership.