Latest on Royal AM Sale: What We Know As Things Stand

• The sale includes Royal AM's NSL membership, assets (player contracts, goodwill, sponsorships), and liabilities (pending FIFA disputes)
• The delay is part of the approval process, requiring NSL Executive Committee approval
• If the sale fails, options include the PSL buying back the club, a new auction, or liquidation

The ongoing uncertainty surrounding the sale of Royal AM Football Club has sparked questions, especially after the promised announcement of a winning bidder that never materialized on Monday.

Several outcomes are possible at this moment with the sale still yet to finally materialize.

According to Cash N Sport, who broke down the situation in a thread on X (formerly Twitter), here's what we know so far and what to expect moving forward.

What’s Being Sold?

The sale of Royal AM involves three core elements, as outlined by Cash N Sport: 1. Position Status in the NSL: This includes the club’s membership in the National Soccer League (NSL), granting the right to participate in Premier Soccer League (PSL) competitions. 2. Assets: These comprise: Player contracts registered with the NSL. Goodwill, business, and brand names tied to the club. Contracts, sponsorships, logos, trademarks, emblems, and grant funds due from the NSL, totalling R2 million monthly after tax.

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3. Obligations: This refers to any liabilities the club holds, including pending FIFA bans or disputes. The buyer assumes all the good and the bad associated with the club.

Why the Delay in the Announcement?

Although there was anticipation for a Monday announcement, Cash N Sport explains that the delay is simply part of the process.

Bidders were required to submit their offers by the 14th, with a provisional announcement scheduled for the 17th.

However, it was never guaranteed that the announcement would be public immediately.

The sale involves multiple steps, and these steps require time.

NSL Approval is Key

Approval from the NSL’s Executive Committee is a critical component of the process.

If the NSL does not approve the sale, the deal cannot move forward.

After the winning bidder is chosen, the agreement must be submitted to the NSL for approval within three days.

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Price Agreement and Payment

Another key step is agreeing on the price.

Once settled, the buyer must pay the full price (excluding VAT), which will be placed in a trust account until the NSL gives its final approval.

What Happens After NSL Approval?

Once NSL approval is granted, the ownership of Royal AM will transfer to the purchaser.

The new owner will take on full responsibility for player salaries, legal matters, and any historical issues that arise after the transfer.

The new owner can also apply to change the club’s name, logo, colours, and venue.

What If the Sale Doesn’t Go Through?

If the sale fails, Cash N Sport lists three options: 1. The PSL could buy back the club’s status, though debts could complicate this.

2. A new auction could be held. 3. Liquidation, where assets are sold off piece by piece.

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What’s Next?

As Cash N Sport reports, the delay in the announcement indicates final details are being ironed out.

Next week will be crucial for the future of Royal AM, as the PSL faces time constraints to complete the season with all 16 teams.

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Source: Briefly News