SARS Moves to Sell Royal AM Over Mounting Financial Woes

(The Post News) – The South African Revenue Service (SARS) is moving forward with plans to sell Premier Soccer League (PSL) club Royal AM to recover an alleged R40 million tax debt owed by the club’s owner, Shauwn Mkhize. This development follows a series of legal setbacks for Mkhize in her dispute with SARS.

The North Gauteng High Court recently dismissed Mkhize’s urgent application, which sought to compel the SARS-appointed curator to assure the National Soccer League (NSL) of Royal AM’s financial stability. This assurance was intended to allow the club to continue participating in league fixtures. The court struck the application from the roll, citing a lack of urgency.

In addition to the tax issues, Royal AM faces a R15 million debt to Serbian striker Samir Nurkovic. Nurkovic’s attorney, Davor Lazic, has approached the PSL, requesting that the league deduct the owed amount from the club’s monthly grants to settle the debt. Lazic emphasized the urgency of the matter, noting potential sanctions such as further transfer bans, points deductions, or even relegation if the payment is not made promptly.

The club’s financial woes have also impacted its on-field activities. Royal AM has struggled to fulfill its fixtures, leading to suspensions of their matches by the PSL. The team’s difficulties have raised concerns about its future in the league and the potential consequences for its players and supporters.

SARS Commissioner Edward Kieswetter welcomed the court’s decision, stating that taxpayers should consistently meet their tax obligations. He emphasized that SARS is committed to administering the law without fear or favor to ensure compliance.

As the situation unfolds, the sale of Royal AM appears imminent, with potential buyers needing to address both the outstanding tax liabilities and the debt owed to Nurkovic. The club’s future remains uncertain amid these financial and legal challenges.