The future of Msunduzi Municipality’s R27 million sponsorship of Premier Soccer League (PSL) team Royal AM FC remains uncertain as the club faces a financial crisis, largely due to owner Shauwn Mkhize’s ongoing issues with the South African Revenue Service (SARS).
The municipality’s three-year sponsorship deal, which began in 2023 at R9 million annually, is set to end in the 2025/2026 financial year. However, the team has been placed under curatorship after failing to fulfill fixtures, leading to the cancellation of key matches, including a scheduled home game against Orlando Pirates FC in January 2025. The financial difficulties worsened after a raid on Mkhize’s properties, with her bank accounts frozen and several luxury items confiscated, leaving players without their December salaries.
Despite this, the sponsorship deal remains active for now, but local political pressure to cancel it has been mounting. Some groups argue that the funds could be better used to improve the municipality’s own struggling service delivery efforts. Msunduzi Municipality spokesperson Ntobeko Ngcobo confirmed that a motion to end the sponsorship deal was under consideration by the council, which will make a final decision after the matter is discussed in an upcoming meeting.
Mkhize, whose financial situation has been under scrutiny by SARS since 2023 for tax arrears of nearly R50 million, has vowed to resolve the issues, though no assurances have yet been provided. The PSL Executive Committee is also closely monitoring the situation, with the possibility of Royal AM being removed from future fixtures if it cannot meet its commitments.
The sponsorship was initially seen as a strategic move by Msunduzi to boost the city’s profile by partnering with a PSL team. However, as Royal AM’s financial troubles deepen, the future of the sponsorship, and the club’s participation in the league, remains in doubt.
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