"It Was Bound to Collapse": Royal AM Reportedly Loses R27m Msunduzi Sponsorship Deal

• Royal AM has lost R27 million in municipal sponsorship following public backlash and legal action
• The club has been navigating well-documented financial challenges, with SARS placing it under curatorship over R40 million in unpaid taxes
• Shauwn "MaMkhize" has set her eyes on a new football venture in Eswatini after failed attempts to save and sell Royal AM

Royal AM has reportedly lost the controversial R27 million sponsorship deal it had secured from the Msunduzi Municipality in KwaZulu-Natal (KZN). The deal had been marred by months of public outrage and drawn-out legal battles.

DA takes Royal AM to court

Opposition political parties, particularly the Democratic Alliance (DA), labelled the sponsorship illegal. The DA took Royal AM to court in October 2023 in an attempt to nullify the agreement.

Confirming the decision, ANC Chief Whip in Msunduzi, Sandile Dlamini, explained that the matter was discussed during a full council meeting held on Wednesday. He added that there was nothing out of the ordinary, as the issue was handled under a confidential agenda item.

He explained that the terms of the agreement were hinged on the club's participation in the PSL. Since it no longer exists in the league, the plausible decision was to terminate the deal.

The DA also released a statement celebrating the decision the terminate the sponsorship with the football club.

As part of the deal, which came into effect in July 2023, it was agreed that the payment would be made in annual instalments of R9 million until the end of the 2025/2026 financial year.

The municipality paid the first instalment in July 2023, with the second payment expected in July 2024. In return, the city was set to benefit from increased attendance at the Harry Gwala Stadium, driven by football supporters.

Neither Shauwn Mkhize and Royal AM general manager, Richard Makhoba has responded to questions sent to them. The Msunduzi Local Municipality has also yet to comment on the matter.

Legal and financial woes mount

Royal AM has been engulfed in financial and legal turmoil. The South African Revenue Service (SARS) placed the club under curatorship over unpaid taxes believed to be in the region of R40 million. This financial crisis eventually led to the club being put up for sale.

Auction fails, PSL expels Royal AM

Despite an auction and a formal bidding process, no suitable buyer was approved. The last-minute potential buyer reportedly failed to raise the necessary funds. As a result, the Premier Soccer League (PSL) decided to expel Royal AM from the league. While the club’s existence hangs in limbo, owner Shauwn “MaMkhize” Mkhize has reportedly tried, but failed, to take the PSL to court in a bid to overturn the decision.

MaMkhize eyes Eswatini club deal

Briefly News previously reported that, MaMkhize has set her sights on acquiring another football club, this time outside South Africa.

She is said to be interested in buying Mbabane Highlanders, one of the biggest clubs in Eswatini. This comes after previous reports that linked her to another Eswatini-based team, Moneni Pirates.

Source: Briefly News