By Lehlohonolo Lehana.
The KwaZulu-Natal High Court has ordered that embattled Royal AM football club disclose potential buyers to a SARS curator over R40 million tax debt by the controversial owner Shauwn Mkhize.
The KZN club will be sold to recoup part of the tax debt.
The new owner will also inherit a R14-million debt owed to Serbian player, Samir Nurkovic.
The club also faces outstanding payments to former Mamelodi Sundowns defender Ricardo Nascimento, who won a dispute against the club for unpaid wages.
Earlier this week, the Durban High Court denied Mkhize’s application to regain control of the club, allowing SARS to proceed with discussions with potential buyers.
The club has been under curatorship, and SARS has won the battle to sell Royal AM after months of court battles. This decision has significant implications for the club, its players, and its fans.
It’s worth noting that Mkhize has denied rumours that Royal AM was for sale, stating that the club was committed to its partnership with the Msunduzi Municipality and the people of Pietermaritzburg.
Legal papers suggest that the could face liquidation or even expulsion from the PSL if a sale is not concluded.
Royal AM has been struggling to fulfil its fixtures, and the PSL has suspended all their matches until further notice.
The PSL has been advised to refrain from expelling the Pietermaritzburg team immediately to give the Sars curator time to find a buyer for the club.
Amid this situation, Bloemfontein Celtic, a club purchased by Mkhize and renamed Royal AM in 2021, have opted out of competing in the ABC Motsepe League, with reports suggesting the team’s owners may acquire Thwihli Thwahla’s PSL status.
The PSL is expected to make an announcement regarding Royal AM in the near future.
Meanwhile Msunduzi Municipality Mayor Mzimkhulu Thebolla expressed concern over the potential loss of the city’s PSL club, stating it would be a significant blow to Pietermaritzburg.
“It will be a big blow for the entire Pietermaritzburg because the deal was not just about the Royal AM team but about bringing PSL games to the city,” said Thebolla, adding that the municipality remains committed to transparency and accountability and will provide updates as necessary.