In a significant development, the South African Revenue Service (SARS) has confirmed it will sell Premier Soccer League (PSL) club Royal AM to recover alleged tax debt owed by its owner, entrepreneur Shauwn “MaMkhize” Mkhize. The club, which has been under curatorship since last year, faces liquidation as SARS moves to settle the outstanding amount.
The decision follows a court-granted preservation order obtained by SARS against several properties owned by MaMkhize, including Royal AM. The club has been embroiled in a series of legal battles with SARS, as MaMkhize sought to ensure the team could continue participating in the Betway Premiership and Nedbank Cup.
On Monday, 17 February, broadcaster Andile Ncube and SABC Sport journalist Mazola J. Molefe reported that SARS had won the legal battle to sell Royal AM. “A sad day for our football. After months of speculation, it’s done. SARS have won, and Royal AM will be sold,” Ncube wrote on X (formerly Twitter).
The club’s financial troubles came to a head in January when it launched an urgent court application to compel the curator to issue a “letter of comfort” to the National Soccer League (NSL), guaranteeing its ability to fulfil its fixtures. Alternatively, it sought permission from the NSL to continue playing in the PSL and Nedbank Cup. However, the court ruled that the application was not urgent and struck it off the roll, with costs.
SARS Commissioner Edward Kieswetter welcomed the court’s decision, stating, “SARS is pleased with the court’s decision to strike the matter from the court’s roll for lack of urgency. Taxpayers have a legal obligation to fulfil their tax obligations at all times and remain compliant with their tax affairs.”
The preservation order against Royal AM is linked to MaMkhize’s alleged tax debt of R40 million. In November last year, SARS raided her Umhlanga residence as part of its efforts to combat tax evasion.
The latest development raises questions about the future of Royal AM’s participation in the Nedbank Cup quarterfinal draw, which the PSL was set to hold on Monday evening. The club has not played any matches since its 3-1 loss to TS Galaxy on 29 December, and the PSL suspended all its fixtures in January.
An SABC Sport report last week suggested that the PSL was considering expelling Royal AM, though no official decision has been made. As SARS moves forward with the sale, the fate of the club and its players remains uncertain, marking a somber moment for South African football.
The situation underscores the importance of financial compliance and the far-reaching consequences of tax evasion, even in the world of professional sports. For Royal AM and its supporters, the road ahead is fraught with challenges as the club faces liquidation and an uncertain future.
