Royal AM Sale Collapses: Moodley Deal Fails Due To Missed Deadline

The South African Revenue Service (SARS) has revealed that the sale of Royal AM has encountered a significant setback due to a missed deadline, which was 10:00 on Thursday to make a payment.

Sportswire reported earlier on Thursday that Chockalingam “Roy” Moodley had acquired the club. However, the deal collapsed at the last minute because Global Investments (the buyer) failed to meet the stipulated payment deadline to make funds available, as detailed in a letter from the curator.

The curator has since informed the Premier Soccer League (PSL) of the failure, which held its executive committee meeting on Thursday, as previously reported by Sportswire.

The curator’s communication outlined the situation:

“The purpose of this communication is to notify interested parties of the outcome concerning the intended sale/auction of the Royal AM Football Club. 

“In terms of the published acceptance procedure stipulated in the documents titled “INVITATION TO SUBMIT OFFERS” read together with the “PUBLIC NOTICE INVITATION TO SUBMIT OFFERS 

“ROYAL AM FOOTBALL CLUB (PTY) LTD” and the draft sale of business agreement, and after having received offers for the purchase of the Royal AM Football Club, the curator bonis, on 19 March 2025, notified the representatives of Global Investments 0107 (Pty) Ltd (“Global Investments”) that they were the Successful Offeror / Purchaser of the football club.

“In terms of clause 12 of the invitation to submit offers referred to above, the Successful Offeror was required to within a period 3 (three) days (“Payment Period”) of being advised by the curator bonis in writing that he, she or it is the Successful Offeror, pay the accepted offer amount (minus the deposit amount) (“Purchase Price”) into the trust account of VZLR Inc.  

“Notwithstanding numerous demands to the representative(s) of Global Investments to comply with its obligations by inter alia the sale agreement, as at 10h00 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 the 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 approximately 10h30 today to the Offeror’s representatives.  

“The curator bonis notified the members of the Executive Committee of the National Soccer League shortly thereafter, as they were scheduled to meet to deliberate the matter at 11h00 today.  

“The Seller, as represented by the curator bonis, has reserved its rights to pursue appropriate legal redress against Global Investments for the damages occasioned as a result of the aforementioned breach. 

“The curator bonis extends his gratitude to the National Soccer League for the guidance provided and for affording the curator bonis an opportunity to sell Royal AM FC as a going concern.” 

Despite the deal’s collapse, Sportswire understands that Mr. Moodley intends to pursue the purchase again. However, this development reopens the opportunity for other interested parties. The curator will announce a new deadline for expressions of interest in the coming days.