By Lehlohonolo Lehana.
The sale of Royal AM Football Club has failed to materialise, after a deal to buy the club collapsed at the last minute, South African Receiver of Revenue (SARS) curator confirmed.
The club, owned by controversial businesswoman Shauwn Mkhize, failed to pay staff and players and owes SARS about R40 million in unpaid taxes.
SARS seeking to recover R40 million debt from Mkhize, appointed Jaco Venter as the club’s curator. As a result, SARS initiated proceedings to either liquidate or sell the club.
Fullview learnt Durban businessman Chockalingam “Roy” Moodley of Global Investments 0107 (Pty) Ltd failed to make a payment at 10am in accordance to the sale agreement.
“In terms of clause 12 of the invitation to submit offers referred to above, the Successful Offeror was required to within a period 3 (three) days (“Payment Period”) of being advised by the curator bonis in writing that he, she or it is the Successful Offeror, pay the accepted offer amount [minus the deposit amount] [“Purchase Price”] into the trust account of VZLR Inc.,” the SARS curator announced in a statement.
“Notwithstanding numerous demands to the representative(s) of Global Investments to comply with its obligations in accordance with inter alia the sale agreement, as at 10h00 today, it/they had failed to effect payment of the Purchase Price into the trust account of the curator bonis’ legal representatives.
“As a result of aforesaid failure to make payment as required, the curator bonis was left with no other option but to cancel the agreement with Global Investments, which election was communicated at approximately 10h30 today to the Offerors’ representatives.
“The curator bonis notified the members of the Executive Committee of the National Soccer League shortly thereafter, as they were scheduled to meet to deliberate the matter at 11h00 today.
The 2024/25 season is edging closer to its conclusion and time seems to be running out for Royal AM. As things stand, the club could be relegated at the end of the term.
Royal AM last played on 29 December, losing 3-1 to TS Galaxy. They currently sit at the bottom of the Betway Premiership table with eight points from 11 matches.
Royal AM has been under the spotlight since 2021, when the KwaZulu-Natal-based side refused to play in the relegation/promotion playoffs of that season.
At the time, Mkhize believed they had been treated unfairly by the PSL after missing out on automatic promotion to the top-flight from the Championship.
Sekhukhune United were crowned the winners of that second-tier league campaign, beating second-placed Royal by just two points to automatic promotion. Three of the points accumulated by Sekhukhune during that season came after they were handed three points by the league after their opponents, Polokwane City, were punished for failing to field the prescribed number of under-23 players, as stipulated by PSL rules.
Royal boycotted the season-ending playoffs, instead approaching the courts to try to have Sekhukhune’s promotion overturned. This did not happen, with Mkhize eventually buying the Premiership status of cash-strapped Bloemfotein Celtic to join Sekhukhune as one of the two new top-flight teams for the 2021/22 season.
Since then, Royal has been in and out of court as they try to fight an order by global soccer governing body Fifa to pay their former striker, Samir Nurković, R15-million after the club terminated the Serbian’s contract in 2022, without making a single appearance. This was after they signed him as a free agent when he departed Kaizer Chiefs.
SARS seized Mkhize’s assets due to unpaid taxes. The asset seizure and frozen accounts have prevented the club from paying its players, with December salaries only paid in January.
Following the asset seizure by SARS due to tax irregularities, Royal AM has found itself in dire straits.
Several clubs within the league are advocating for the immediate expulsion of Royal AM, claiming the club has caused significant reputational harm to the PSL and its partners.
The PSL has also suspended monthly grant payments to the club, as headline sponsor Betway is not receiving adequate exposure.