Royal AM, a Premier Soccer League club, is currently facing financial difficulties that have led to their players refusing to return to training. The club’s owner, Shauwn Mkhize, is reportedly dealing with a R37 million tax debt, adding to the club’s financial woes.
In a recent report by the SABC, it was revealed that Royal AM players have gone on strike due to unpaid salaries for the month of December. This strike has resulted in a halt in training sessions for the team, further complicating the club’s situation.
The financial troubles for Royal AM escalated when the South African Revenue Service (SARS) conducted a raid on Shauwn Mkhize’s properties at the end of November. The raid, carried out in conjunction with the Hawks, resulted in the seizure of luxury vehicles, including a Mercedes G-Wagon, a Ferrari, a Rolls-Royce Silver Ghost, and a Maserati.
The club had already been struggling financially after receiving a three-window transfer ban from Fifa in July 2023. Additionally, they were ordered to pay R15 million to Serbian striker Samir Nurkovic following the premature termination of his contract, which led to a legal dispute taken to Fifa by the player.
Despite Royal AM’s efforts to appeal the matter to the Court of Arbitration for Sport, the appeal was dismissed in October. With mounting debts and financial challenges, the future of the club looks uncertain. It is unlikely that a buyer will step in to acquire the franchise given its substantial debt.
As a result of the financial turmoil, it remains unclear when Royal AM will participate in their next match. A scheduled fixture against Chippa United was recently cancelled by the Premier Soccer League without explanation, leading to disappointment among fans and players alike.
The postponement of matches due to player strikes over unpaid salaries is not unprecedented in South African football. Last season, Moroka Swallows faced a similar situation, leading to the club being docked six points by the PSL for missed games. The Swallows franchise was subsequently bought by Marumo Gallants, who took their place in the Premiership.
The challenges facing Royal AM serve as a reminder of the financial instability that can impact football clubs and the importance of sustainable financial management in the sport.
