Royal AM Faces Potential Liquidation Over R40 Million Tax Debt and Salary Disputes

by Nyiko Maluleke

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PSL club Royal AM is facing serious financial trouble after the South African Revenue Service (SARS) launched an investigation into club owner Shauwn Mkhize over an alleged R40 million tax debt. The debt has led to the club’s inability to meet player salary demands, resulting in the players taking drastic action by going on strike. As a consequence, Royal AM’s upcoming match against Chippa United, scheduled for Saturday, 11 January 2025, has been suspended.

The situation has prompted outrage among local football fans, many of whom have taken to social media to express their anger. Some fans have suggested that Mkhize should consider selling the club in order to settle her debts and fulfill her obligations to the players.

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This financial crisis comes on the heels of a previous setback for the club, when they were handed a three-window transfer ban for failing to meet financial commitments in deals involving players Ricardo Nascimento and Samir Nurkovic. Now, with the investigation into the massive tax debt, Royal AM is facing the very real prospect of liquidation unless they can resolve their financial issues swiftly.

The future of the Pietermaritzburg-based club hangs in the balance, and the pressure is mounting on Mkhize to take action to avoid further damage to the club’s reputation and stability.

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