Court orders MamKhize's Royal AM to pay back R27 million to Msunduzi Municipality
Tough times seem to be lasting in the life of controversial businesswoman Shauwn 'MaMkhize' Mkhize as she suffers another blow. The Pietermaritzburg High Court has ordered Mkhize's football club, Royal AM, to pay back R27 million for the sponsorship agreement between them and the Msunduzi Municipality.
Royal AM and Msunduzi Municipality entered into a three-year sponsorship agreement in 2023, and the football club has been receiving R9 million each year since the commencement of the agreement.
Judge Nontuthuzelo Mlaba said the agreement was unlawful and invalid.
ALSO READ: MaMkhize's Masterclass: life lessons, financial woes, and fans shouting 'Pay back the money!'
Royal AM to pay back the money
The sponsorship agreement was brought to court by the DA in KwaZulu-Natal, as they sought to have the contract reviewed and ultimately set aside.
The judgment reads, 'all payments made by the first respondent [Msunduzi Municipality] under the sponsorship contract to the fourth respondent [Royal AM] must immediately be repaid to the first respondent with interest from the date of the judgment [08 August 2025].'
Mlaba also ordered the first, second and third respondents [the council and municipality manager] to pay for the costs of the application.
Termination of the Royal AM's agreement
Msunduzi Municipality's council terminated the agreement in June of this year because Royal AM was no longer participating in the Premier Soccer League (PSL) matches.
Royal AM was kicked out of the PSL after Mkhize ran into trouble with the South African Revenue Service (Sars). The club was placed under curatorship by Sars as it tried to recoup the R40 million that Mkhize owed it.
Mlaba, in her judgment said it appears as if the municipality sought marketing, promotion and public relations benefits from its association with Royal AM.
'These are services that any other soccer club based in KwaZulu-Natal could have been interested in, given the benefits they would gain from the sponsorship contract. The opportunity was, however, not made available to other KZN soccer clubs.'
ALSO READ: 'I have lost my soul' – MaMkhize reflects on the pain of losing her football club
She added that while the submission by counsel for the municipal respondents was that Royal AM was the only football club identified, no reasons were given as to why it was chosen for the sponsorship.
'This was not in line with Section 217 of the Constitution, which requires that the sourcing of such services be transparent, competitive and fair.'
The DA highlighted that the municipality was already in acute financial distress when the sponsorship agreement took place. According to the agreement, the municipality was also obligated to pay for the annual maintenance costs of the Harry Gwala Stadium.
Harry Gwala Stadium was the home ground of Royal AM.
A win for the people
DA Councillor Ross Strachan said the party welcomes the judgment by Mhlaba, and views it as a win for the people of Msunduzi.
'This is not just a legal win, but it is a win for accountability,' he said. 'We will ensure this money is returned and redirected to service delivery.'
Msunduzi municipal spokesperson told Daily Sun the judgment was noted.
'We are presently applying our minds to the ruling and carefully considering all legal options available to us.'
NOW READ: Sars strikes: MaMkhize's luxury cars up for auction
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