Big news in South African football and local governance — Royal AM Football Club has been ordered by the High Court to return the entire R27 million they received from a sponsorship deal with the Msunduzi Municipality.
The court declared the agreement unlawful, marking a significant legal victory for residents and watchdog groups.
Controversial Sponsorship Sparks Public Outcry
The sponsorship deal, which was set to last three years, became a hot topic after many questioned why a struggling municipality with pressing service delivery issues would hand over such a huge sum to a football club.
Just weeks before the court ruling, the municipality itself moved to cancel the agreement amid mounting pressure.
Who Owns Royal AM?
Royal AM is owned by Durban businesswoman Shauwn Mkhize and her son Andile Mpisane — two well-known figures in the South African sports and entertainment scene.
The deal’s collapse now raises questions about what happens next for the club’s finances and reputation.
Residents and Civil Groups Applaud the Decision
Local taxpayers and civil society organizations have been vocal opponents of the sponsorship from day one.
Anthony Waldhausen, CEO of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC), welcomed the ruling warmly.
“We opposed this sponsorship from the start,” Waldhausen said. “Now we want to see the municipality actively recovering the money and putting it back into urgent community services that truly need funding.”
A Question of Priorities and Transparency
The sponsorship was initially pitched as a way to boost sports development and raise the municipality’s profile.
But critics argued it was a poor financial decision, especially given Msunduzi’s ongoing struggles with basic service delivery and budget constraints.
Calls are growing louder for a thorough investigation into how this deal was approved and the motives behind it.
Many demand stronger oversight of municipal spending to prevent similar controversies in the future.
What Happens Now with the Money?
Following the court ruling, Msunduzi Municipality is now legally required to recover the full R27 million from Royal AM.
It’s still unclear if the football club will return the funds willingly or if the municipality will have to take further legal action.
And with Shauwn Mkhize recently facing financial scrutiny from SARS, questions swirl around whether she even has that kind of money accessible.