Royal AM still in limbo Royal AM players pose for a team photograph ahead of their Betway Premiership match against TS Galaxy at Harry Gwala Stadium in Pietermaritzburg last December. Photo: Gerhard Duraan/BackpagePix
Image: Gerhard Duraan/BackpagePix
The window for submitting purchase offers for embattled KwaZulu-Natal club Royal AM has officially closed, leaving the club’s future hanging in the balance amid financial uncertainty
According to reports, the club’s new owners were supposed to be announced this past Monday, but this has not happened, leading to questions about the bidding process and the club’s future.
Mkhonto weSizwe Party MP David "Mazolman" Skosana confirmed earlier this week he was one on the interested parties who were keen to buy the club, but his R15 million offer wasn’t enough to seal the deal.
Further reports suggested foreign businessmen, including one linked with sports minister Gayton McKenzie, were also keen on the club.
So, what is going on?
According to Cash N Sport, who describe themselves as Africa’s leading sports business authority, the announcement of the club’s new owners is being held back by red tape.
The executive committee of the NSL must first approve the sale of the club before anything can go ahead. And, it can be quite a lengthy process.
“Concurrently, the price has to be agreed and paid. Price to be agreed and inserted. Excludes VAT, which will be added unless zero-rated (sale of a going concern). Buyer pays full price into trust account, held until NSL approval. If NSL rejects, funds are returned,” Cash N Sport wrote on X.
Upon approval by the NSL, the ownership of Royal AM will transfer over to to the buyer, who will take over all obligations from league status, player disputes, legal matters and players' contracts. The obligations the new owners will also inherit include the monies owed to Samir Nurkovic and Ricardo Nascimento.
Royal AM was put on sale earlier this month to recoup some of the R40 million owner, Durban businesswoman and socialite Shauwn Mkhize owes in taxes
IOL Sport
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