Troubled Betway Premiership side Royal AM have been officially expelled from the Nedbank Cup after failing to fulfil their fixture against Milford United in the round of 32 last month.
The KwaZulu-Natal-based club’s inability to meet their obligations has been attributed to ongoing financial and administrative challenges that have plagued the team in recent weeks.
Royal AM’s struggles are rooted in a financial crisis, with club owner Shauwn Mkhize embroiled in a massive R40 million tax debt with the South African Revenue Service (SARS).
The club’s precarious financial situation has put it on the brink of being sold, further complicating their ability to perform and manage their commitments.
The failure to fulfill their scheduled Nedbank Cup match had already delayed the progress of the tournament, with two fixtures still outstanding. After much deliberation, FARPost has revealed that a decision was made to expel Royal AM from the competition, effectively eliminating them from this year’s Nedbank Cup.
As a result, Sekhukhune United, who triumphed over Cape Town City FC in the round of 32, and Milford United will now meet in the Last 16 of the tournament on Sunday in Durban. The winner of that match will face Mamelodi Sundowns in the quarterfinals.
The club’s mounting financial woes have reached a critical point, with Mkhize’s tax debt and the potential sale of the club dominating headlines. The latest court ruling, obtained by SARS, allows the tax authority to take control of Royal AM’s sale in order to recover the money owed. This ruling has brought an end to the uncertainty surrounding the future of the club, which has now been placed up for sale.
In addition to the tax issues, reports have surfaced indicating that the Premier Soccer League (PSL) has suspended Royal AM’s monthly grant payments due to the club’s failure to provide sufficient exposure for its headline sponsor, Betway.
Earlier this month, the PSL took the unprecedented step of suspending all of Royal AM’s fixtures indefinitely, leaving both football fans and players in limbo, desperately seeking clarity and a resolution.
The curator appointed to manage the club’s affairs has recommended either the liquidation or sale of Royal AM. In a court submission last week, the curator highlighted that the club must be sold to avoid liquidation. If no buyer emerges soon, the club could be forced to shut down permanently.
Adding to the turmoil, the club’s accounts have been frozen following a recent asset seizure, disrupting payments to players. Reports indicate that while December salaries were paid in January, players only received their January salaries recently, further contributing to the growing discontent surrounding the club.
Royal AM’s last competitive match was a 3-1 defeat to TS Galaxy on 29 December. The club now finds itself at the bottom of the Betway Premiership standings, with just eight points from 11 matches, facing an uncertain future both on and off the field.