Why Royal AM may scare off potential buyers

The whispers around the sale of Royal AM have suddenly turned into loud chatter after the South African Revenue Service (SARS) issued a call for bids on Thursday. 

But for all the noise surrounding this sale, don’t be fooled—any potential suitor might want to think twice before stepping up to the plate.

The saga of this KwaZulu-Natal side has been in the headlines for months, but it now feels like we’re at the business end of the story. 

The club’s owner, Shauwn Mkhize, is no stranger to controversy, and her personal financial issues have only added to the chaos. A staggering R40 million tax debt to SARS has left the club in a position where it can no longer afford to ignore its problems. 

The invitation for bids signals that Royal AM could finally be sold, but the question remains: who would be brave—or foolish—enough to take on this sinking ship?

Next Friday, those interested in buying the club will have to fork out a R1 million deposit. The lucky bidder will be told if they’ve won by March 17, but don’t think this will be a smooth ride. The sale agreement paints a bleak picture for anyone daring enough to take the reins.

According to the document sent out by the club’s curator, Willem Venter, the new owner will inherit every ounce of Royal AM’s baggage. And trust me, there’s plenty of it. 

All debts, claims, and legal disputes tied to the club will land squarely on the shoulders of the new owner. If that wasn’t enough, the buyer will also have to pay for any unpaid wages, bonuses, signing-on fees, image rights, and the like for the players. 

And there’s a problem with that, too— some of Royal AM’s players and staff have been waiting for their paychecks since December.

If anyone attempts to buy this club, they’ll be stepping into a financial minefield. 

The club has also fallen way behind on its fixtures—nine games to be precise. 

With no action on the field this year, the new owner will be tasked with catching up, though the sale agreement gives no clear guidance on how that will happen. It simply says the new owners will have to fall in line with the PSL’s calendar. 

Then there’s the issue of the transfer ban. Royal AM has been under a two-year FIFA ban, which can only be lifted once they settle their debt (R15-20 million) with former player Samir Nurkovic. That’s another complication on top of the debt and disgruntled players.

A club in this much turmoil is never an easy sell, and with every new clause that gets added to the sale agreement, you can see why prospective buyers may hesitate. 

This is not just about buying a football club—it’s about dealing with years of poor financial management, strained relationships with players, and a mountain of legal and contractual headaches. 

For anyone serious about investing in South African football, Royal AM might be more trouble than it’s worth.