MaMkhize’s Royal AM faces court battle over R27 million sponsorship! Reality TV star Shauwn “MaMkhize” Mkhize‘s soccer team, Royal AM FC, has managed to survive the termination of a multi-million rand sponsorship deal, but the club’s financial and legal challenges are far from
The Pietermaritzburg High Court is set to rule on whether MaMkhize’s club is entitled to a R27 million sponsorship from the Msunduzi Municipality in Pietermaritzburg, KwaZulu-Natal (KZN) Midlands. The hearing is scheduled for 28 February 2025.
Sponsorship Under Legal Scrutiny
On Wednesday, 29 January 2025, Royal AM FC narrowly escaped a motion proposed by the Democratic Alliance (DA) calling for the Msunduzi Municipality to terminate their R27 million sponsorship agreement.
Municipal Speaker Eunice Majola decided to handle the matter confidentially since it had already been brought before the court by the DA in 2024.
The DA has strongly opposed the sponsorship, arguing that the municipality should not support a business that is currently embroiled in serious legal and financial issues.
Tax Evasion Allegations and SARS Investigations
One of the DA’s key arguments is that MaMkhize is facing multiple legal battles, including allegations of tax evasion.
The South African Revenue Service (SARS) has conducted raids on her properties, and her soccer team, Royal AM FC, has reportedly been placed under SARS curatorship due to unpaid taxes.
The DA insists that municipal funds should not be allocated to a business owner facing such serious allegations.
“Non-compliance with tax laws and intentional tax evasion are criminal offences, and the municipality should not be associating itself with a business under such scrutiny,” a DA representative stated.
MaMkhize’s Royal AM
DA’s Legal Challenge and Court Case in February
DA councillor in Msunduzi, Reggie Khanyile, told Daily Sun that the issue is far from over, as the court case will proceed next month.
“The reason they didn’t table the motion is that we had already brought the matter to court in March 2024. We are confident about our case, and should we win, all councillors who voted in favor of the sponsorship will be held personally accountable,” said Khanyile.
He added that the DA attempted to resolve the issue through a council motion, but since the municipality chose not to debate the motion, the party is now focusing on the court case.
“We tried to save the municipality from wasting taxpayer money, but since they refused to address the issue internally, we are happy to fight it out in court,” he said.
Municipality’s Response and Confidential Proceedings
The Msunduzi Municipality has remained largely tight-lipped about the sponsorship dispute.
Municipal spokesperson Nontobeko Ngcobo told Daily Sun that the council discussed the matter confidentially and will not be making public statements until the court proceedings conclude.
The decision to handle the issue behind closed doors has sparked criticism, with opposition parties accusing the municipality of a lack of transparency.
MaMkhize
MaMkhize’s Silence on the Controversy
Attempts to obtain comment from MaMkhize were unsuccessful, and she has not publicly responded to the latest developments regarding the sponsorship deal.
Mam’Mkhize, who is known for her lavish lifestyle and high-profile business ventures, has faced multiple financial and legal hurdles in recent years.
Despite these challenges, her club, Royal AM FC, has remained competitive in South African football, but their long-term sustainability could be at risk if they lose the municipal sponsorship.
What Happens Next?
As the February 28 court date approaches, all eyes will be on the Pietermaritzburg High Court’s ruling.
If the DA wins the case, the R27 million sponsorship deal could be scrapped, dealing a major financial blow to Royal AM FC.
On the other hand, if the municipality successfully defends the sponsorship, Mam’Mkhize’s club will continue receiving public funding, despite the ongoing SARS investigations and legal controversies.
For now, the battle between the DA, the Msunduzi Municipality, and Royal AM FC is set to intensify in court, with significant implications for sports funding, municipal governance, and financial accountability in South Africa.