Shauwn Mkhize Explains How Family Trust Led to Royal AM's Financial Collapse

• Former Royal AM owner, Shauwn Mkhize, has explained how a family trust linked to her dragged the club into financial turmoil
• The club’s collapse has deepened after a failed municipal deal and official expulsion from the league
• Royal AM's downfall has sparked debate on governance, trust structures, and accountability in the PSL

Former Royal AM owner Shauwn Mkhize has broken her silence and clarified what led to the South African Revenue Service (SARS) placing her club under curatorship over an outstanding R40-million tax debt.

Speaking exclusively to Andile Ncube on Metro FM, MaMkhize detailed how Royal AM became entangled in the matter, explaining that SARS had obtained information concerning a family trust in her name. The trust, which held several assets including Royal AM, became the focus of the investigation.

According to MaMkhize, the football club was not directly responsible for the debt but was caught up in the broader financial scrutiny of the trust’s assets. She expressed disappointment at how the situation unfolded and insisted that she was working closely with the relevant authorities to resolve the matter.

The club recently lost out on a sponsorship deal

Her latest revelations come days after her former club reportedly lost a controversial R27-million sponsorship deal secured from the Msunduzi Municipality in KwaZulu-Natal (KZN). The deal had been marred by months of public outrage and drawn-out legal battles.

Failed takeover attempts lead to expulsion

The club’s failure to secure a takeover and resolve its financial issues resulted in its expulsion from the PSL. It has been under curatorship by SARS due to unpaid taxes and was unable to overcome the ongoing legal battle involving Mkhize.

The PSL held a Board of Governors (BOG) meeting in April to finalise its status in the league. This meeting officially confirmed the club's removal, leaving the league with only 15 teams for the remainder of last season.

The case surrounding Royal AM’s status has highlighted broader issues of club ownership and financial stability in South African football. With the legal proceedings now over, the PSL will continue without the KwaZulu-Natal club, marking a turbulent chapter in the league's history.

Financial and legal troubles for Royal AM

Briefly News previously reported that Royal AM is under curatorship due to a significant tax debt, estimated at around R40 million. The debt is reportedly linked to the club’s president, Shauwn Mkhize, and her family trust.

This financial instability has worsened the club’s situation, as it has been unable to honour its obligations both on and off the pitch.

She also recently lost her latest bid to have the Premier Soccer League reinstate her club to the league after being expelled.

Mama Joy speaks on MaMkhize's new club

Briefly News previously reported that the former Royal AM boss, MaMkhize, has been unveiled as the president of a football club in Eswatini.

MaMkhize was congratulated by Mama Joy, once a superfan of Royal AM, who praised her and rallied behind her new venture in Eswatini.

Source: Briefly News