Royal AM, which competes in the South African League, has been disqualified from the Nedbank Cup after failing to play its scheduled match against Milford United due to a financial crisis.
Regarding Royal AM’s withdrawal, the PSL released the following statement:
“The NSL Executive Committee convened on Monday to consider further representations from the Curator and management of Royal AM Football Club. Having reviewed these representations, the Executive Committee, in concurrence with Royal AM and the Curator, resolved that Royal AM Football Club will take no further part in the Nedbank Cup competition this season, in the interest of time.”
Following Royal AM’s disqualification, the PSL announced the date and location of Milford FC’s next cup match. Milford FC, which will face Sekhukhune United FC, will play on Sunday, March 2, 2025, at 15:00 at Princess Magogo Stadium.
The winner of this match will face league leaders Mamelodi Sundowns in the quarter-finals.
Along with the club’s debts, its owner is also struggling with personal financial difficulties. Royal AM owner Shauwn Mkhize has a R40 million tax debt to the South African Revenue Service (SARS).
Due to these debts, rumors of the club’s sale have begun to spread. In fact, a court ruling has ordered the club to be put up for sale, and a curator has been appointed to oversee the sales process.
The curator emphasized that the sale must be carried out urgently to prevent the club from potential bankruptcy.
New investors will face a major challenge, as they will have to take on all debts and turn the club into a profitable business.
Royal AM’s main sponsor, Betway, has also suspended monthly payments due to the club’s failure to provide sufficient brand visibility. Following this decision, Royal AM has indefinitely suspended its matches.
The financial crisis has not only disrupted match schedules but has also led to the seizure of assets and the freezing of Mkhize’s personal accounts.
Players’ December salaries were only paid at the end of January, and the uncertainty surrounding the payment of future salaries still remains.
In the league, Royal AM has only collected 8 points so far and currently sits at the bottom of the table. Their poor performances on the pitch are making the financial crisis even worse.