SARS Set to Proceed with Royal AM Sale at R15 Million Amid Financial Struggles

• The South African Revenue Services (SARS) is set to auction Royal AM's top-flight status for R15 million
• The club is currently banned from signing new players due to unsettled debts, including payments to Samir Nurkovic
• Several buyers have shown interest in purchasing the club, but concerns over the club’s outstanding matches

The saga surrounding Royal AM Football Club could soon come to a dramatic conclusion as the South African Revenue Services (SARS) prepares to auction the club’s top-flight status, starting at R15 million.

This comes as SARS looks to recover around R40 million in tax debt linked to the club’s president, Shauwn Mkhize, and her family trust.

SARS Takes Control to Recover Tax Debt

SARS, determined to recoup the substantial tax debt, has been granted permission by the court to proceed with the sale of Royal AM.

The franchise, currently struggling under the weight of its financial issues, is set to go under the hammer with an asking price of approximately R15 million.

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However, potential buyers will also have to factor in additional contractual obligations, including an outstanding payment of the same amount owed to striker Samir Nurkovic, as per a ruling by the Court of Arbitration for Sport last year. Despite this, there is some optimism for the club’s future, as any buyer would inherit the franchise as a “going concern.”

This means that while they would take on the club’s existing debts, there remains potential for the business to become profitable in the long term.

Banned From Signing Players

Royal AM is currently under a ban from signing new players, a restriction that will lift once the club settles its debts with both Nurkovic and defender Ricardo Nascimento.

This has left the club in a precarious situation, as the PSL had been considering the possibility of expelling the club from the Betway Premiership.

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However, the latest developments seem to have put that option on hold, with SARS now firmly in control of the club’s operations. Royal AM has been inactive since 29 December 2024, when they suffered a loss to TS Galaxy at Harry Gwala Stadium. The club’s fixtures were suspended following the appointment of a curator by SARS to manage day-to-day operations.

Adding to the club’s woes, delayed salary payments to players, technical staff, and other employees forced the PSL to request a “letter of comfort” from the curator, James Venter.

Without this assurance, the league confirmed that all Royal AM’s matches would remain postponed indefinitely.

Potential Buyers Show Interest Amid Financial Uncertainty

As the situation nears a resolution, several potential buyers have expressed interest in purchasing the club, though concerns about the number of outstanding matches and the risk of relegation to the second tier remain.

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If a sale goes through, the new owner will inherit not only the club’s debt but also the challenge of stabilizing the franchise and avoiding relegation. Despite the uncertainty, there is hope that the sale of Royal AM will mark the beginning of a new chapter for the Durban-based club.

Mama Joy Speaks Out on Royal AM Sale

Briefly previously reported that Mama Joy trended on social media after reports emerged that MaMkhize's team, Royal AM, was to be sold due to her legal battle with SARS.

Many online users mocked the outspoken superfan, questioning her next move.

Source: Briefly News