The Pietermaritzburg High Court has reserved judgment in the Democratic Alliance’s (DA) court challenge against the Msunduzi Municipality’s controversial R27 million sponsorship of Royal AM Football Club. The DA is pushing for the sponsorship’s termination, arguing that it is both illegal and irrational.
The case, initially filed before Royal AM’s ongoing financial troubles, has gained further significance as the club faces a financial crisis.
Royal AM’s Financial Struggles
In November 2023, the Durban High Court granted a preservation order in favour of the South African Revenue Service (SARS) against assets controlled by businesswoman Shauwn Mkhize, including Royal AM. This led to the football club being placed under the control of a curator.
According to SARS, discussions between the curator and the club’s management regarding its financial position took place in December 2024, escalating the matter to the National Soccer League (NSL). By January 2025, the NSL suspended all of Royal AM’s future fixtures due to these financial difficulties. Recent reports suggest that the club is on the verge of being sold.
DA Questions Municipality’s Priorities
The DA maintains that the Msunduzi Municipality’s sponsorship is a misuse of public funds, especially given the city’s financial struggles. The municipality, however, has defended the decision, stating that the sponsorship brings economic benefits to the region.
DA KwaZulu-Natal deputy provincial leader, Sithembiso Ngema, criticized the municipality’s spending priorities:
“Given the current state of the city and Msunduzi’s history of being placed under administration, it is concerning that the ANC leadership and the Municipal Manager are prioritising unnecessary expenditures over essential services. Residents of Msunduzi deserve better from the Acting Municipal Manager, and it is crucial to hold him and the ANC leadership accountable for their actions.”
What’s Next?
With the judgment now reserved, the case remains a significant test of municipal accountability and financial decision-making. The outcome could set a precedent for future sponsorship deals involving struggling municipalities and professional sports teams.
