The financial turbulence at Royal AM Football Club has taken center stage after the club officially confirmed that players, technical staff, and other employees have not received their salaries for December 2024. The club attributed this unfortunate delay to a preservation order obtained by the South African Revenue Service (SARS), which has restricted access to crucial financial resources.
In a candid statement addressing the issue, Royal AM management sought to clarify the situation, provide reassurances to affected parties, and shed light on the broader implications of the order. The club also faced mounting pressure as players and staff raised concerns about their livelihoods being directly impacted during the festive season.
The Statement from Royal AM
Royal AM released an official statement addressing the situation and explaining the reasons behind the delay:
“We regret to inform our valued players, technical team, and employees that salary payments for December 2024 have been delayed due to a preservation order issued by SARS. This order has resulted in the freezing of certain funds, making it temporarily impossible to access the resources needed to meet our financial obligations.”
The club assured stakeholders that every effort is being made to resolve the issue swiftly.
“We are actively engaging with SARS to find an amicable resolution to this matter. We deeply value the dedication and hard work of our staff and players and are committed to ensuring they are compensated as soon as possible.”
What Is a SARS Preservation Order?
A preservation order is a legal mechanism used by SARS to safeguard assets or funds that may be subject to recovery due to tax non-compliance. The order typically freezes access to bank accounts or other financial resources, ensuring the preservation of assets while investigations or legal proceedings are underway.
Although the club did not disclose the specifics of the preservation order, its issuance suggests a serious financial dispute between Royal AM and SARS.
The Impact on Players and Staff
For Royal AM players, technical staff, and employees, the delay in salaries comes as a heavy blow. December is traditionally a month of financial strain for many, with increased expenses during the festive season. The inability to meet financial commitments has led to widespread frustration and uncertainty.
A member of the technical staff, speaking anonymously, shared their concerns:
“This is a very challenging time for us. Many of us have families to support, and December is particularly demanding financially. We understand the club’s position, but it doesn’t make the situation any easier for those of us who rely on our salaries.”
Similarly, a first-team player described the emotional toll of the delay:
“It’s hard to stay focused when you’re worried about how you’ll pay your bills or provide for your family. We hope this matter gets resolved quickly because it’s affecting everyone, from players to the kitchen staff.”
Royal AM’s Financial Struggles: A History
This is not the first time Royal AM has faced financial challenges. The club, which has been in the spotlight since its controversial promotion to the DStv Premiership, has encountered several issues related to player wages and operational costs in the past.
Despite its ambitious branding and high-profile ownership under businesswoman Shauwn “MaMkhize” Mkhize, Royal AM has occasionally struggled to maintain financial stability. The preservation order issued by SARS now highlights deeper systemic issues that the club must address to ensure its long-term viability.
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Interview with a Club Insider
An insider from the Royal AM management team provided additional context to the situation in an exclusive interview:
“This preservation order was unexpected. We were in the process of preparing salary payments when we received the notification from SARS. It’s not a case of the club being unwilling to pay—it’s a case of being unable to access funds.”
When asked about the timeline for resolving the issue, the insider expressed optimism:
“We are actively engaging with SARS to address their concerns. Our legal team is working tirelessly to expedite the process. We are confident that a resolution will be reached soon, allowing us to pay our staff and players promptly.”
The insider also acknowledged the frustration of affected parties:
“We understand the distress this has caused and are deeply apologetic. The players and staff are the backbone of this club, and their well-being is our top priority.”
Calls for Transparency and Accountability
The salary crisis has reignited calls for greater transparency and accountability within Royal AM. Fans and commentators have urged the club to adopt better financial management practices and to communicate openly about challenges.
One fan expressed their frustration on social media:
“Royal AM needs to get its house in order. This isn’t the first time there have been issues with salaries. The players and staff deserve better.”
Analysts have also pointed to the need for clubs in the DStv Premiership to adopt stricter financial governance measures.
What’s Next for Royal AM?
The immediate priority for Royal AM is resolving the preservation order and ensuring that outstanding salaries are paid. However, the incident raises broader questions about the club’s financial health and its ability to navigate regulatory scrutiny.
For the players and technical staff, the focus remains on staying professional amidst the uncertainty. A senior player emphasized the importance of unity during difficult times:
“We are trying to stay motivated and focused on our football. At the end of the day, we are professionals, and we have to keep working hard. But we need clarity and support from the club to do that effectively.”
Conclusion: A Club at a Crossroads
Royal AM’s December salary crisis is a stark reminder of the financial pressures faced by football clubs in South Africa and beyond. While the preservation order from SARS has complicated matters, the club’s response and its commitment to resolving the issue will determine its future trajectory.
For now, the priority is clear: to rebuild trust with players, staff, and supporters by addressing the immediate crisis and implementing measures to prevent similar issues in the future. As Royal AM works to restore stability, the football community will be watching closely, hoping for a resolution that benefits all parties involved.
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