Russian Businessman In Royal AM Takeover Bid

An undisclosed Russian businessman is among the consortiums vying to purchase Royal AM’s Premier Soccer League (PSL) status, Sportswire has learned. If successful, the consortium intends to re-establish Bloemfontein Celtic in Bloemfontein.

The deadline for submitting bids was Friday at 13:00, with a required deposit of R1 million, according to documents shared with interested parties.

Sportswire has been informed that a Russian businessman is keen to acquire the club and revive Celtic, a claim previously supported by South African Sports Minister Gayton McKenzie.

Significant interest has been shown in acquiring the club’s status, with bids from a North West business consortium offering R21 million, and from David Skhosana and his partner. Former Bidvest Wits General Manager George Mogotsi is also reportedly among the bidders.

Amidst the chaotic situation, Sportswire has learned that the PSL, citing a “force majeure” situation, may opt against relegating any team this season. Instead, they would promote two teams for the next season, subject to the approval of the Premier Soccer League’s executive committee. The committee will deliberate on the matter and amend the existing decision, according to a source.

Royal AM faced potential liquidation or sale last month, which could have led to the club’s demise in professional football. The appointed curator submitted a report to the court recommending either liquidation or sale, with the latter being chosen.

However, club president Shauwn Mkhize reportedly attempted to retain control. A source within the South African Revenue Service (SARS) informed Sportswire that Mkhize withdrew her challenge against the club’s auction process on Wednesday, allowing the bidding process to proceed as planned.

Sportswire contacted SARS for updates, but officials seemed unaware of the latest developments.

Royal AM’s situation has caused embarrassment to the league, prompting the PSL to convene a Board of Governors meeting last month. The PSL decided that Royal AM would be excluded from the Nedbank Cup round of 32 against Milford. Their remaining 19 Betway Premiership matches are currently suspended.

Royal AM’s troubles stem from SARS seizing Mkhize’s assets in November due to alleged unpaid taxes of nearly R40 million. The asset seizure and frozen accounts prevented the club from paying its players, with December salaries only paid in January. The PSL has also suspended monthly grant payments to the club, as headline sponsor Betway is not receiving adequate exposure.

Royal AM last played on 29 December, losing 3-1 to TS Galaxy. They currently sit at the bottom of the Betway Premiership table with eight points from 11 matches.