Pietermaritzburg – A South African court has ruled that Royal AM, the football club owned by businesswoman Shauwn “MamKhize” Mkhize, must return R27 million to Msunduzi Municipality. The Pietermaritzburg High Court declared the three-year sponsorship agreement, signed in 2023, unlawful and invalid.
Royal AM had been receiving R9 million annually from the municipality under this deal. The Democratic Alliance (DA) in KwaZulu-Natal challenged the contract, which led to the court ordering that all payments be repaid with interest from 8 August 2025. The municipality’s council and manager were also instructed to cover legal costs.
Msunduzi Municipality ended the sponsorship in June after Royal AM stopped participating in Premier Soccer League (PSL) matches. The club was removed from the PSL amid tax issues involving MamKhize, who owes the South African Revenue Service (SARS) around R40 million. SARS placed the club under curatorship to recover the debt.
Judge Nontuthuzelo Mlaba pointed out that the municipality sought marketing and promotional benefits from the deal, but no other KwaZulu-Natal football clubs were given the chance to compete for the sponsorship. This lack of transparency contravened Section 217 of the South African Constitution, which requires procurement to be fair and competitive.
The DA also noted that Msunduzi Municipality was already under financial strain when the sponsorship was agreed upon. Furthermore, the municipality was responsible for the upkeep of the Harry Gwala Stadium, Royal AM’s home ground.
DA Councillor Ross Strachan welcomed the judgment, calling it a win for accountability and promising that recovered funds would be redirected toward service delivery.
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