Why Royal AM’s Sale Collapsed: A Breakdown of the Failed Deal
- The highly anticipated sale of Royal AM’s PSL status collapses, leaving the club’s future uncertain
- The club was placed under curatorship by SARS, who sought to sell the club amid financial instability
- With the sale blocked, the club’s ownership crisis deepens, leaving fans and stakeholders wondering what’s next for Royal AM
The much-anticipated sale of Royal AM’s Premier Soccer League (PSL) status has hit a dead end, leaving the club’s future uncertain.
The deal, which was expected to bring new ownership and financial stability, crumbled at the final hurdle due to non-payment by the winning bidder.
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Here’s a closer look at why the transaction fell through
Royal AM’s Financial Turmoil and PSL Suspension
Royal AM’s troubles began when the South African Revenue Service (SARS) placed the club under curatorship, seizing it from flamboyant owner Shauwn Mkhize over an alleged R40 million tax debt.
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The PSL responded by suspending all Royal AM fixtures, citing the club’s inability to meet its financial obligations for the remainder of the season.
Adding to their woes, the PSL’s Executive Committee (EXCO), in consultation with the club and its appointed curator, withdrew Royal AM from the 2025 Nedbank Cup.
Time constraints and financial instability were cited as key reasons behind the decision.
With no viable alternative, SARS put the club up for sale in March, attracting interest from high-profile investors looking to take over the PSL franchise.
Why the Sale Fell Apart
Despite strong interest in Royal AM’s PSL status, the sale collapsed at the final stage due to a failure by the winning bidder, Global Investments, to make the required payment within the stipulated time frame. According to a SARS curator statement, Global Investments was informed on March 19 that their bid had been successful.
As per the terms of the sale agreement, they were required to pay the balance of the purchase price within three days.
However, despite repeated demands, the payment was not made.
In terms of clause 12 of the invitation to submit offers, the successful bidder was required to pay the full purchase price within three days of notification.
The SARS-appointed curator explained.
Despite numerous demands, Global Investments failed to fulfill its financial obligations, leading to the cancellation of the sale agreement.
The curator officially terminated the deal on Thursday morning and immediately informed the PSL’s Executive Committee, which was set to deliberate on the matter.
Who Is Behind Global Investments?
The failed bidder, Global Investments, is linked to Mageshpren Moodley, the son of businessman Chockalingam Roy Moodley.
Roy Moodley, a known associate of former South African president Jacob Zuma, has been implicated in various state capture allegations, accused of benefiting from lucrative government contracts through political connections. While no direct evidence has surfaced linking the Royal AM deal to state capture controversies, the Moodley connection raises questions about the bidder’s financial credibility and potential political entanglements.
Source: Instagram
Andile Mpisane’s Carefree Dancing Amidst Royal AM’s Uncertainty Sparks Social Media Reactions
Briefly News previously reported that Andile Mpisane, the son of Royal AM’s former owner Shauwn Mkhize, was spotted dancing and appearing unbothered despite the serious financial struggles and unpaid players at the club.
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Source: Briefly News
