Archives

Royal AM Facing PSL Expulsion Over SARS Debt Battle

By Ncamiso Dlamini

The future of Royal AM in the Premier Soccer League (PSL) hangs by a thread as the league considers expelling the club from the 2024/25 season. The club, owned by businesswoman, Shauwn Mkhize, is in financial trouble after the South African Revenue Service (SARS) took control of its affairs due to unpaid taxes amounting to R40 million.

The PSL’s Executive Committee has been in ongoing meetings to determine the club’s fate. According to rule 57.13 of the National Soccer League (NSL) Handbook, the league has the power to suspend, relegate, or even expel a club under extreme circumstances. If Royal AM is expelled, the PSL will have to continue with only 15 teams in the 2024/25 Betway Premiership season. Royal AM has not played a match since December 29, 2024, when they lost 3-0 to TS Galaxy at Harry Gwala Stadium. Since then, their fixtures have been postponed indefinitely as the PSL demanded assurances regarding the club’s ability to function properly.

The club recently lost a legal battle to force the PSL and SARS to allow them to continue playing. The court dismissed their urgent application, leaving the team stuck at the bottom of the log with only 11 games played, one win, five draws, and five losses, totalling just eight points.Their Nedbank Cup round of 32 match against Milford FC was also postponed due to the ongoing uncertainty.

Sports law expert Mandla Tshabalala says the PSL is in a tough position. He explains that the league has contracts with sponsors and broadcasters that guarantee a 16-team competition with a certain number of matches. Expelling Royal AM could create legal complications, potentially breaching these agreements. “The PSL has never faced a situation like this before,” Tshabalala said. “SARS, as a third party, now controls the club, which puts the league in a difficult spot. The PSL must decide carefully because if they expel Royal AM, they will have fewer teams and fewer games for broadcasters, possibly violating sponsorship contracts.”

The PSL is expected to announce its final decision before the end of the week. Sponsors, fans, and other clubs are eagerly waiting to see how this situation will unfold.

If Royal AM is expelled, it will mark a historic moment in South African football, with serious consequences for both the league and the team’s future.

 

RELATED POSTS
iii
ROVIERO
vill
IN CASE YOU'VE MISSED IT
iii
ROVIERO
vill
football
lesedi