PSL left with serious headache after collapse of Royal AM sale

The Premier Soccer League (PSL) has been left with a serious problem to overcome to complete the Betway Premiership season with 16 teams after the proposed sale of Royal AM fell through on Thursday. 

This after the successful bidder in an auction of the club on March 14 failed to meet a deadline on Thursday morning to deposit money in the relevant bank account, according to a statement released by VZLR Attorneys on behalf of the curator.

Global Investments 0107 (Pty) Ltd, reportedly owned by controversial Durban business-person and politician Roy Moodley, were the successful bidders. 

Royal have not played a competitive match since December since being put under curatorship by Sars in November over a reported R40m tax debt owed by owner Shauwn Mkhize.

“The purpose of this communication is to notify interested parties of the outcome concerning the intended sale/auction of the Royal AM Football Club,” VZLR Attorneys' statement read. 

“In terms of the published procedure ... and after having received offers for the purchase of Royal AM, the curator bonis, on March 19 notified the representatives of Global Investments they were the successful purchaser.

“In terms of clause 12 of the invitation to submit offers referred to above, the successful offerer was required to within a period [of] three days of being advised [they were] the successful offerer, pay the accepted offer amount [minus the deposit amount] into the trust account of VZLR Inc.

“Notwithstanding numerous demands to the representative(s) of Global Investments to comply with its obligations as at 10am today, it/they had failed to effect payment of the purchase price into the trust account of the curator bonis' legal representatives. 

“As a result of aforesaid failure to make payment as required, the curator bonis was left with no other option but to cancel the agreement with Global Investments, which election was communicated at about 10.30am today to the offeror's representatives.

“The curator bonis notified the National Soccer League [NSL, for which the PSL is the trading name] shortly thereafter, as they were scheduled to meet to deliberate the matter at 11am today [Thursday].” 

This situation leaves the PSL with a serious poser as the 2024-25 Betway Premiership campaign is nearing its end in May. Most teams have already played more 20 matches and time is running out for Royal, bottom of the log having fulfilled 11 games, to complete their season.