Royal AM FC are facing further challenges off the field, as their lucrative R27 million sponsorship deal with Msunduzi Municipality is now under threat.
The sponsorship, which was secured in July 2023, was intended to cover the club's use of the Harry Gwala Stadium in Pietermaritzburg for three years, following the club's relocation from Durban after Maritzburg United (now Durban City) was relegated to the Motsepe Foundation Championship.
However, in a motion seen by the Siya crew, there are now concerns about the sustainability of this deal due to the club's financial difficulties, which have seen their PSL fixtures postponed.
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The city of Pietermaritzburg could potentially sever ties with Royal AM, as the club continues to face ongoing challenges related to curatorship and financial instability.
The motion filed by the Msunduzi Municipality to review the partnership cites several concerns, including Royal AM's curatorship by the South African Revenue Services (SARS) and the cancellation of the club's matches.
This has led to the municipality questioning whether the city is receiving any tourism benefits from the sponsorship, as initially intended. Furthermore, the motion highlights that the negative scrutiny surrounding the Royal AM brand could damage the municipality's reputation, which may prompt the council to distance itself from the club.
The motion reads in part:
"NOTICE OF MOTION TO COUNCIL IN TERMS OF STANDING RULE 22.
This council noting that:
- Royal AM has been put under curatorship by the South African Revenue Services (SARS)
The council therefore resolve that;
(a) The legal department is tasked with reviewing the sponsorship contract and evaluating ways of terminating it, rescind the report and publicly distance itself from Royal AM.
That this Council Shall move."
With the sponsorship now under review, the financial future of Royal AM could be further jeopardized if the partnership is terminated. The potential loss of the R27 million deal would be a significant blow to the club, especially as they continue to deal with internal issues related to their curatorship and match cancellations. As the motion is reviewed by the Msunduzi Municipality, Royal AM's management will be hoping for a resolution that allows them to keep their sponsorship intact. However, with the ongoing financial uncertainty surrounding the club, it remains to be seen how this situation will unfold, and whether Royal AM will be able to keep their relationship with the municipality and the city's support.
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