Royal AM Sale: New Owners Face R65 Million Debt and FIFA Transfer Ban

Royal AM Football Club is on the market, but its new owners will inherit significant financial burdens. The club, based in KwaZulu-Natal, is being sold to recover tax debts owed by owner Shauwn “MaMkhize” Mkhize. However, the transaction comes with a staggering R65 million debt, including unpaid wages, legal claims, and operational costs.

The South African Revenue Service (SARS) has taken control of the sale, requiring interested buyers to place a R1 million deposit. The winning bidder will be announced by March 17, pending approval from the Premier Soccer League (PSL).

Bidding Process and Debt Inheritance

• SARS is selling the club to recoup R40 million in tax debt.
• Bidding starts next Friday, with a R1 million deposit required.
• The new owner must inherit all existing debts, estimated at R65 million.

According to sports finance analyst Nqobile Ndlovu, the club’s actual value may be closer to R30 million, far below its liabilities.

FIFA Transfer Ban and Player Wages

Adding to the financial woes, Royal AM is currently under a FIFA-imposed transfer ban due to unpaid wages to former player Samir Nurkovic, amounting to R15 million.

Furthermore, six other players have filed claims for early contract termination, intensifying the club’s instability. The new owner must settle these debts before the ban is lifted.

Operational Challenges and Fixture Backlog

Since December 29, 2024, Royal AM has not played a single match, resulting in a backlog of nine games. The PSL has mandated that any new owner must comply with the league’s scheduling requirements, but it remains unclear how the team will manage the congested fixture list.

Public Reaction to the Royal AM Sale

News of the club’s sale has sparked debate, with many questioning the financial logic behind the deal.

• Tebogo: “Tender gurus will buy it, and before you know it, it will be owned by the same people.”
• Mpendulo: “No sane person will buy this team, even if it sells for R1.”
• Phoku: “The club’s value is now -R65M. This is a financial disaster.”
• Theo: “Bad investment. No investor will take this deal—not even Elon Musk.”

Will Anyone Buy Royal AM?

With massive debts, a FIFA transfer ban, and an uncertain future in the PSL, Royal AM’s sale presents a risky investment. The club is currently under the administration of curator Jacob Venter, who is managing its assets—including the stadium, training facilities, and player contracts—until a new owner takes over.

As the March 17 deadline approaches, the question remains: Who will take on this financial burden?

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