R20 Million Royal AM Deal Collapses as Moodley Fails to Make Payment

• Moodley’s R20 million bid to purchase Royal AM was nullified after a SARS vetting process found him unfit
• With Moodley out of the picture, other bidders, including football administrator David Skosana, may get another chance to acquire the club
• The club has played only 11 matches this season and missed 12, meaning they would have to play at least three games per week to complete their schedule

Durban businessman Chockalingam “Roy” Moodley’s attempt to take over struggling PSL club Royal AM has hit a major roadblock after allegedly failing SARS' vetting process.

SARS Curator Blocks Moodley’s Takeover

A SARS-appointed curator, Jaco Venter, was tasked with overseeing the sale of Royal AM, which was auctioned earlier this month as part of efforts to recover the R40 million owed by club owner Shauwn Mkhize.

Moodley had submitted the highest bid, reportedly worth R20 million, but his deal was nullified due to concerns over his financial and legal history.

Apparently, Moodley’s background paints him as someone who doesn’t have a good record with SARS, so they have decided to nullify his winning bid,” a source close to the matter told SowetanLIVE.

Moodley has previously been linked to controversial state capture allegations.

According to a Daily Maverick report from June 2023, Moodley and his companies, including Royal Security, were implicated in corruption scandals during former president Jacob Zuma’s tenure.

Official Statement Pending

Despite reports of Moodley’s failed bid, SARS curator Jaco Venter maintained that the process was still ongoing.

When it is finalised, we will send a press release. Just be a little bit patient,” Venter told SowetanLIVE.

New Buyers Could Step In

With Moodley disqualified, other bidders may now have an opportunity to take over the troubled club.

One of them is David “Mazolman” Skosana, a football administrator-turned-politician, who previously offered R15 million through a consortium but failed to secure the deal.

Royal AM’s Struggles Continue

Meanwhile, Royal AM remains in limbo as the club fights to complete its remaining fixtures before the end of the PSL season on May 24.

The club has played only 11 games so far, missing 12, meaning they would have to play at least three matches per week to catch up. Despite reports that Royal AM had halted training earlier this year, club manager Richards Makhoba dismissed these claims.

We’ve never stopped training. We have been playing friendlies from the last time you spoke to me. This thing of saying we started training because there is a new buyer is nonsense,” Makhoba said.

Uncertain Future for Royal AM

With no confirmed buyer and a growing financial burden, Royal AM’s future remains uncertain.

Any new owner will need at least R65 million to cover the purchase and clear the club’s debts.

Royal AM Under New Ownership as PSL Confirmation Looms

Briefly News previously reported that Royal AM has been sold to a Durban businessman after being placed under the control of SARS due to tax-related issues.

The Premier Soccer League (PSL) is expected to officially confirm the new ownership soon.

Following the sale, players were instructed to return to training as the club fights to avoid relegation.

Source: Briefly News