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Shawn Mkhize, Royal AMBackpage

PSL reveal their stance on Royal AM financial issues as club release statement indicating all parties are seeking a 'resolution' to the crisis

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  • Financial troubles have severely impacted club
  • Royal AM apologises for issues
  • PSL also working to resolve matters
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  • Siyanda Mthanti & Kabelo Mahlasela, Golden Arrows vs Royal AM, November 2024Backpagepix

    WHAT HAPPENED?

    Royal AM has faced significant challenges this season, including a FIFA transfer ban and a lack of an active DDC side. Recently, the club's financial issues worsened as SARS took over their finances with club owner Shauwn Mkhize allegedly owing more than R40 million to the tax body.

    This week the PSL had to postpone the Durban-based club's match against Chippa United due to unpaid salaries to players.

    On Wednesday Thwihli Thwahla responded to the crisis by releasing a statement apologizing for the situation and pledging to find a solution.

    On the same day PSL board member, Mato Madlala, emphasized that his organisation was taking steps to assist with resolving the club's issues but pointed out that the situation is abnormal and called for patience.

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  • PSL acting CEO Mato MadlalaBackpagepix

    WHAT MADLALA SAID

    “Member club business I do not discuss. It’s all out there, documented, that the league has given Royal a postponement for the weekend and we are going to inform the public about what will happen,” Madlala said as reported by TimesLIVE on Wednesday.

    “We are guided by the member club to say, ‘can we do this or that?’. And then we act.

    “So let’s just give it time. Hopefully we will see some form of solution.”

    “Matters like this are not normal. Just give us time. We understand the public are interested and so are other member clubs.”

    Asked if the PSL can reveal if it is giving the matter its full attention, Madlala replied: “Definitely.”

  • ROYAL AM STATEMENT

  • Royal AMBackpage

    THE BIGGER PICTURE

    It is imperative for both the club and the PSL to act swiftly to resolve these issues and ensure the players and staff are paid what is owed. Additionally, finding long-term solutions to prevent a repeat of such a situation will help maintain the integrity of the league.

    The quick resolution of this crisis is crucial for both Royal AM's and the PSL's future stability.

    This time last year the league was also plunged into crisis after Moroka Swallows also fell into financial difficulties with the club ultimately having to sell their PSL status to Marumo Gallants. However, the former club's employees have now taken Gallants to the league's Dispute Resolution Chamber for alleged breach of contract.

  • John Maduka, Royal AM, May 2024Backpagepix

    WHAT NEXT FOR ROYAL AM?

    Royal AM needs to resolve its financial issues with SARS in order to gain access to the club's funds and operate efficiently. The club and the league governing body must ensure that proper financial management is in place moving forward so that the league program can be completed properly this season.

    There is a crucial upcoming match against Orlando Pirates that could have significant implications for their title-challenging season. Royal AM must resolve the salary issue before this fixture to avoid further complications.

    All eyes are on how quickly this crisis can be rectified.