Sportswire has learned that Durban businessman Chockalingam “Roy” Moodley has acquired Royal AM.

Moodley’s name has been linked to several high-profile State Capture scandals in South Africa, and he is known to be a close associate of former President Jacob Zuma.

In 2023, Moodley’s security firm, Royal Security, was awarded a R282 million contract by the DA-led Western Cape provincial government, a decision the Democratic Alliance attempted to block. The contract was for security services at Western Cape government-owned properties over a two-year period.

Now, Moodley is extending his interests into sports by purchasing Royal AM, a club that has been embroiled in controversy since November. The team has not played a match in 2025, following the South African Revenue Service’s (SARS) seizure of owner Shauwn Mkhize’s assets.

As a result, the Premier Soccer League (PSL) suspended all of Royal AM’s fixtures indefinitely. They were also excluded from the Nedbank Cup Round of 32, with Milford receiving a bye.

SARS, seeking to recover an alleged R40 million debt from Mkhize, appointed Jaco Venter as the club’s curator. With no immediate resolution in sight, SARS initiated proceedings to either liquidate or sell the club. Ultimately, the sale was approved.

Sportswire understands that several potential buyers were considered, including individuals from Russia and Greece. However, due to political considerations within South Africa, these bids were not successful, leading to the club’s acquisition by Moodley.

With Moodley now in control, the PSL is scheduled to hold an executive committee meeting on Thursday to determine the path forward, as Royal AM has 19 remaining matches to fulfill.

Sportswire has been informed that the PSL is considering not relegating any teams this season, potentially expanding the league to 18 teams for the 2025/26 season as a result of the Royal AM situation.

This decision is subject to the approval of the PSL’s Executive Committee. The league may promote the top two clubs from the Motsepe Foundation Championship to achieve the 18-team structure, thus eliminating relegation for this season.