PSL Club Faces Liquidation After Failure To Meet Salary Demands and R40 Million Tax Debt

PSL Club Faces Liquidation After Failure To Meet Salary Demands and R40 Million Tax Debt

  • Royal AM could land themselves in hot water after SARS opens an investigation into club owner Shauwn Mkhize, who allegedly has a R40 million tax debt
  • Due to the debt, the club has failed to meet salary demands, and players decided to down tools to cause their match against Chippa United on Saturday, 11 January 2025, to be suspended
  • Local football fans responded angrily on social media by saying Mkhize should consider selling the club to cover her debts and obligations to players

Under-fire PSL side Royal AM could face liquidation after SARS opened an investigation into owner Shauwn Mkhize and her enormous tax debt.

The Pietermaritzburg-based side is under investigation after failing to meet salary demands and postponing their upcoming match against Chippa United on Saturday, 11 January 2025.

Royal AM coach John Maduka and owner Shauwn Mkhize face uncertain times at the PSL club.
Coach John Maduka and owner Shauwn Mkhize face turmoil at PSL club Royal AM. Image: RAMFC_sa.
Source: Twitter

Royal AM was under scrutiny after receiving a three-window transfer ban after failing to meet the financial demands for deals involving Ricardo Nascimento and Samir Nurkovic.

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Royal AM face financial troubles

The KZN team's match against Chippa was postponed, according to the tweet below:

According to an SABC Sport source, SARS is investigating the club, while Chippa, under new coach Thabo September, is frustrated after their match was suspended.

The source said:

“Mkhize allegedly owes SARS nearly R40 million in tax debt linked to her family trust, which has a ripple effect on other assets, including the football club. SARS could make efforts to collect the tax debt even further by beginning the process of liquidating the club, while FIFA is also keeping a close watch as Royal AM continues to defy its ruling to pay Nurkovic, with the next steps likely to involve points deduction and/or liquidation.”

Chippa voice their frustrations about the suspended match on their Twitter (X) profile:

Royal AM are no strangers to financial troubles

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In addition to the transfer ban, they were forced to pay striker Nurkovic R12 million after failing their court appeal to avoid the payment and the transfer ban.

Coach John Maduka has been feeling the pressure at the club, which is second last in the PSL after only one victory in 11 matches.

Royal AM are currently second-last in the PSL.
PSL club Royal AM could face liquidation after failing to meet financial obligations. Image: RAMFC_sa.
Source: Twitter

Fans criticise Mkhize

Local football fans criticised Mkhize and Royal AM on social media, saying the club must do what they can to meet their financial obligations to the players.

Sima Mpahla feels for Royal AM coach John Maduka:

“Bloemfontein Celtic disguised as Royal AM. John Maduka has no luck.”

Anelisa Lingani is frustrated:

“What is wrong with the PSL? Teams not paying their players.”

KamoCent Mathebula wants Royal to be punished:

“This club must be relegated.”

MC Dlamini made a suggestion:

“Why is she not selling this team?”

Admire Wa Ka Ngobeni asked questions:

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“What was Mamkhize doing purchasing a soccer team? Was it flexing her muscles?”

Veteran PSL striker tipped for key role at SuperSport United

As Briefly News reported, Serbian striker Samir Nurkovic is tipped to make a major impact at his new club, SuperSport United.

The striker joined SuperSport United before the January transfer window, having left TS Galaxy as a free agent at the start of the 2024/2025 season.

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Source: Briefly News

Authors:
Junior Bester avatar

Junior Bester (Editor) Junior Bester is the current Entertainment (Sports) Writer at Briefly News. He achieved a ND:Journalism at the Cape Peninsula University of Technology in 2012. He worked for Independent Newspapers from 2011 till 2022 covering news, sport, business and entertainment for titles such as Weekend Argus, Cape Argus, Daily Voice and Northern News. Junior passed a set of trainings by Google News Initiative. He joined Briefly News in 2024. You can reach him at junior.bester@briefly.co.za