Royal AM football club’s Andile Mpisane and Shauwn Mkhize at a meeting with Msunduzi mayor Mzimkhulu Thebolla.
Image: Supplied
MSUNDUZI Municipality is yet to decide on the future of its R27 million sponsorship to the Premier Soccer League’s (PSL) Royal AM FC, which is currently facing financial crises due to its multimillionaire owner Shauwn Mkhize’s trouble with the taxman.
The team’s three-year sponsorship deal with the municipality, which is struggling to fulfil its service delivery mandate, would come to an end in the 2025/2026 financial year. Since 2023, it has been getting R9 million per year.
The team has been put under curatorship, a situation linked to the cancellation of its Betway Premiership and Nedbank Cup games.
Following a raid at Mkhize’s properties, confiscation of her movable properties, and freezing of her bank accounts in November, its players were subjected to a gloomy festive season with no salaries for December.
The financial situation was so bad that even the PSL was reconsidering the team’s future in the league for failing to pitch up for scheduled matches. Its Thursday home game against Orlando Pirates FC at Pietermaitzburg’s Harry Gwala Stadium was cancelled.
Several political parties in the council and the Msunduzi Association of Residents, Ratepayers and Civics (MARRC) had in the past made unsuccessful attempts to force the municipality to abandon the sponsorship deal, saying the money could be better used to boost the crumbling service delivery.
Several attempts to get comment from Royal AM general manager Richard Makhoba failed as his phone was not answered.
When asked if the municipality was reconsidering whether or not to continue with the sponsor, municipality spokesperson Ntobeko Ngcobo said that would be the decision of their Council, following the DA’s motion for the deal to end.
She said the municipality’s legal team was still considering the sponsorship matter as raised by the DA.
She said the legal team would determine whether it was legally right for the municipality to continue sponsoring the team whose owner was alleged to be in breach of the tax laws.
“Once a comprehensive legal opinion has been formulated, it will be tabled before the Council for deliberation and a final decision.
“The motion will be addressed per Council’s Rules of Order, ensuring that all procedural requirements are complied with,” said Ngcobo.
She said the municipality would provide further updates once the Council has resolved the matter.
However, the South African Revenue Service (SARS) started scrutinising Mkhize before her team signed the deal with the municipality.
In 2023, the Durban High Court issued a warrant of execution against Mkhize, ordering the sheriff or deputy sheriff to “attach and remove the movable property of MABONG FLORA-JUNIOR MKHIZE, (Mkhize’s names), for owing SARS about R50m in outstanding tax payments.”
At the time, Mkhize was estimated to have a net worth of R300m.
Ngcobo said when the SARS issue resurfaced recently, Mkhize promised to resolve it.
PSL Executive Committee was due to meet with the team management on Friday “to afford Royal AM (under curatorship) to make representations regarding this matter”.
The league said Royal AM’s failed to attend games started on January 11 when it was supposed to play against Chippa United FC “due to difficulties arising from the appointment of a curator”.
“The Executive Committee (ExCo) has since convened three separate meetings seeking the assurance that the club, under curatorship, will be able to meet its fixture commitments in a compliant fashion.
“On 17 January 2025, ExCo was informed that a joint letter of comfort (from club management and the curator) would be provided, confirming that the issues that led to the club being unable to meet its commitments had been resolved.
“No such letter of comfort has been forthcoming and ExCo has been left with no alternative but to cancel PSL Fixture - Royal AM vs Orlando Pirates Harry Gwala Stadium at 19h30 - and to suspend all other Royal AM fixtures (Betway Premiership and Nedbank Cup) until further notice,” read the statement.
Msunduzi Mayor Mzimkhulu Thebolla previously said the municipality decided to bring Royal AM to the city as it was looking for a PSL team to partner with in promoting the city.
The city adopted Royal AM after ditching local Maritzburg United FC, which had been relegated to the Motsepe Foundation Championship.
Upon Maritzburg United’s relegation, Royal AM abandoned a R15m sponsor from eThekwini Municipality before the deal came to an end and swiftly moved to Pietermaritzburg.
During the raid, SARS officials, who were accompanied by heavily armed police officers, also paid an unfriendly visit to Royal AM’s clubhouse in Maqongqo, a rural village outside Pietermaritzburg.
While law enforcement officers left Mkhize’s houses in Gauteng and KwaZulu-Natal with luxury vehicles, including a Lamborghini, a Rolls Royce Mercedes-Benz Maybach, BMW X4 or X6, Mercedes Benz-AMG G 63, Toyota Hilux Legend 50, and Mercedes-Benz Z-Class, and trucks full of valuables, it remained unclear what was confiscated at the clubhouse.
A source, who is closer to the Mkhize family, said Mkhize currently has no access to her bank accounts.
“SARS told the banks to freeze all her accounts. Shauwn’s sister and her (sister) husband do not have access to bank accounts as they also have their things attached,” the source said.
It remains unclear how Mkhize is surviving financially since her bank accounts have been frozen. She did not answer her phone.
bongani.hans@inl.co.za