Durban businessman Roy Moodley has broken his silence on the failed Royal AM acquisition, revealing how his R50 million investment was rendered worthless.
The Premier Soccer League (PSL) had rejected key conditions attached to the deal.
Speaking to Sportswire.com at the Roy Moodley Legacy Cup draw, the businessman confirmed that he had agreed to purchase the troubled club in April.
However, the PSL dismissed his proposed terms, effectively ending the deal and contributing to Royal AM’s eventual dissolution.
The veteran businessman submitted three conditions to the PSL: that the club be protected from relegation, be awarded a point per each of the 19 unplayed fixtures, and that the league calendar be extended beyond May to accommodate the backlogged games. All requests were declined.
“For us to avoid relegation, those were the conditions. You can’t play 19 matches in six weeks. The players would have collapsed,” Moodley explained.
“If we are paying R50 million for a team and it’s relegated in three months, then it’s only worth R5 million. That’s a massive loss.”
Moodley even suggested a compromise: allow Royal AM to remain in the Premiership, promote two Motsepe Foundation Championship teams, and temporarily expand the league to 17 clubs, with three relegated the following season. But the PSL executive committee remained unmoved.
Royal AM’s sale had followed the South African Revenue Service (SARS) seizing the club over unpaid taxes amounting to R40 million. After Moodley’s conditions were rejected and no alternative buyer emerged, the PSL terminated the club’s membership, removing them from the league.
Despite the disappointment, Moodley remains passionate about football and open to future ventures in the sport.