MaMkhize Hit with New Legal Setback as Royal AM Loses R27M Deal

Shauwn “MaMkhize” Mkhize—known for her high-profile presence in business and entertainment—is facing a fresh wave of legal and financial turmoil. On 8 July 2025, the Pretoria High Court ruled firmly against MaMkhize and her football franchise, Royal AM, confirming a series of regulatory breaches and administrative failures. This decision not only halted the trajectory of a lucrative sponsorship deal but has jeopardized the club’s status in South African football.

Court Uncovers Regulatory Violations by Royal AM

The court found that Royal AM had seriously misled the National Soccer League (NSL) and violated multiple Premier Soccer League (PSL) regulations. Key infractions included:

• Unauthorised changes to shareholding and directorship in June 2023

• Misrepresentation in the club’s 2024 PSL membership renewal application

• Reckless disregard of fixtures, financial commitments, and core administrative duties

This pattern of governance failure, the court held, justified the club’s expulsion from the PSL, further culminating in curatorship by SARS due to outstanding tax liabilities.

Legal Bid for Reinstatement Rejected

In a decisive blow, MaMkhize’s request to overturn Royal AM’s expulsion was dismissed. The High Court described the club’s state as a “complex web” of mismanagement, unpaid debts, FIFA sanctions, and a “complete breakdown” in administrative stability.

R27 Million Sponsorship Collapses

Just days after the ruling, the Msunduzi Municipality formally canceled a controversial R27 million sponsorship agreement. Initially signed in July 2023, the deal was defended by the municipality until blowback from the Democratic Alliance (DA) and the broader public pressured its cancellation. During a council session, ANC Chief Whip Sandile Dlamini confirmed:

“The sponsorship agreement required the club to be a PSL team. With Royal AM no longer in the league, the contract is void”.

The DA echoed this, accusing the municipality of “wasting public funds” and securing early termination of the deal. 

Background: Royal AM’s Financial and Legal Struggles

The club has been under SARS curatorship since early 2025, following unpaid tax debts nearing R40 million. Its ongoing financial crisis saw player salaries delayed, key assets frozen, and eventually, the club itself put up for auction. Efforts to halt PSL meetings and challenge these proceedings legally have failed, with heavy legal costs imposed on Royal AM. 

What’s Next for MaMkhize and Royal AM?

• Sponsorship Terminated: The R27 million contract from Msunduzi has been axed following both legal directives and political pressure. 

• PSL Status: With expulsion upheld and no evidence of revived administrative stability, Royal AM remains out of the PSL, losing critical competitive and commercial footing. 

• Asset Risks: SARS continues efforts to recover outstanding debts—legal options include liquidation and asset sales. 

Broader Implications

This case highlights the serious consequences of corporate governance failures:

1. Financial Oversight Matters: Ignoring major tax and administrative responsibilities leads to severe official intervention.

2. Ethics in Sponsorships: Public funds—especially from municipalities—must be governed with accountability and transparency.

3. Reputation and Leadership: MaMkhize’s downfall from a symbol of entrepreneurial success to litigation and public censure is stark.

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Summary

Shauwn “MaMkhize” Mkhize and Royal AM now face an uncertain future:

• Legal: High Court denied reinstatement, upheld regulatory breaches

• Financial: Sponsorship canceled; club under SARS curatorship

• Competitive: Expelled without clear path back to PSL

Until issues around governance, debt, and regulatory compliance are fully resolved, Royal AM remains on the sidelines—no longer competing, no support, and staring down a challenging road ahead.