Royal AM Faces Match Suspensions After Court Appeal Rejected

Royal AM faces additional challenges in their attempts to resume suspended Betway Premiership and Nedbank Cup fixtures following a recent high court decision on Friday.

The High Court has denied Royal AM’s request to annul the curatorship imposed by the South African Revenue Service (SARS) and has ruled against the club’s bid to receive league approval for resuming their postponed matches, with costs imposed on the club.

SARS released a comprehensive statement regarding the matter: “On 9 May 2024, the Pietermaritzburg division of the KZN High Court issued a preservation order to SARS concerning the assets of the Shandi Trust,” stated SARS in their extensive communication.

“In November 2024, a different preservation order was granted by the Durban High Court in favor of SARS, affecting the assets of 23 respondents, including Royal AM Football Club (“The Club”).

“The Shandi Trust and the club are regarded as related entities, overseen by Ms. Mkhize. Recently, two rulings regarding these preservation orders were made by the North Gauteng and KwaZulu-Natal Division, Pietermaritzburg high courts, both favoring SARS.

“In December 2024, conversations between the curator and club management occurred to evaluate the club’s financial status and determine their ability to fulfill upcoming obligations for the 2024/25 season.

“After extensive discussions, the club’s financial predicament was escalated to the National Soccer League (“NSL”). In light of the financial difficulties, the NSL suspended all future fixtures of Royal AM Football Club on 22 January 2025.

“On 29 January 2025, the club lodged an urgent application against the curator, SARS, and the NSL.

“This application sought a court order for the curator to provide a letter of comfort to the NSL, affirming the club’s financial capability to adhere to its league fixtures. Additionally, the application contested the curator’s refusal to issue this letter as irrational, unreasonable, and unlawful.

“Alternatively, the club asked the court to compel the NSL to allow them to complete the remaining games of the season, including league and Nedbank Cup matches.

“SARS, the curator, and NSL contested the urgent application. On 5 February 2025, the court decided to remove the matter from the roll due to a lack of urgency, awarding costs to the opposing parties. The court determined that the club did not meet the urgency standards specified in the court’s practice note.

“The court emphasized that procedures and practice notes should not be overlooked; the applicant must present facts indicating why the situation is urgent. The perceived urgency was considered self-created, as the club had been aware of its precarious situation concerning the curator’s inability to provide a letter of comfort well before opting to file the urgent application.

“The merits were not discussed by the court, and consequently, the club remains under suspension from the NSL. The Pietermaritzburg High Court’s decision regarding the Shandi Trust also dismissed the appeal, along with costs.

“In July 2024, the Trustees initiated an urgent application to suspend the preservation order, essentially trying to prevent the curator from enforcing that order.

“This matter was also dismissed from the roll with costs. The trustees’ appeal was rejected on 6 February 2025, as they did not present a compelling case for their request for leave to appeal.”

SARS Commissioner Edward Kieswetter commended the court’s ruling, stating, “Taxpayers must consistently meet their legal responsibilities and maintain compliance with their tax duties.

“It is perplexing that taxpayers can readily approach the courts while equally neglecting their obligations. SARS is legally obligated to enforce the law impartially, ensuring that all taxpayers register, file, and pay their taxes without issues.

“In executing our responsibilities, SARS will remain steadfast in confronting taxpayers who willfully disregard their tax obligations.

“The importance of tax in addressing pressing national matters, such as funding pensions, grants, and education, cannot be overstated.”

SARS declined to make any further comments.

Tax revenue is crucial for the South African government, supporting essential services, including grants. Following the recent court ruling, Royal AM’s matches remain suspended, heightening concerns about their future actions. Sources suggest that Royal AM is seeking funding to meet their obligations but has encountered numerous challenges. It is unclear whether players have received their January salaries, with reports indicating that their last training session took place the prior Friday.

Royal AM is currently in a precarious situation, with club president Shauwn Mkhize’s assets seized by SARS over alleged outstanding taxes approaching R40 million. The club has not participated in any matches since a 3-1 loss to TS Galaxy in December and is now positioned second from the bottom in the league standings, having accumulated only eight points from 11 matches.

Adding to their troubles, Royal AM is also facing a FIFA ban that prevents them from acquiring new players both locally and internationally due to outstanding payments owed to former striker Samir Nurkovic, amounting to nearly R15 million, including interest. This ban has further compelled Royal AM to withdraw from the DStv Diski Challenge.