With the PSL reportedly considering expelling Royal AM, if their matter is not resolved, KickOff has the lowdown on how that could affect player contracts.
Royal AM fixtures have been suspended until further notice for two weeks now, with their backlog affecting the Nedbank Cup round of 16, as Sekhukhune United await the winner of the Last 32 clash between Thwihli Thwahla and Milford FC.
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The club is unable to fulfill its fixtures, as the PSL is still waiting for financial guarantees from their SARS curator.
With a potential expulsion reported to be one of the considerations should Royal AM not comply with PSL requirements within a specified period, KickOff.com spoke to a sports law expert on what could the consequences be for players.
"If Royal AM is suspended or expelled from the PSL, the club would likely be unable to fulfill its contractual obligations to players, particularly regarding salary payments and performance-related benefits," Naeem Dinat, Associate Attorney and Sports Lawyer at Yingke Africa SA explained.
"Under the NSL Handbook, player contracts remain legally binding, but a club's inability to operate effectively may trigger breach of
contract claims from affected players.
"Players would have the following legal recourse:
• Approaching the PSL Dispute Resolution Chamber (DRC): Players can lodge disputes over unpaid wages and contractual breaches. The DRC has the authority to order financial compensation or allow players to terminate their contracts.
• Seeking FIFA Intervention (if applicable): For foreign players or those with contracts referencing FIFA regulations, the FIFA Dispute Resolution Chamber could be an additional avenue for enforcing claims.
• Negotiating Contract Buyouts or Loan Transfers: The PSL may facilitate emergency measures, such as a temporary transfer window, allowing players to sign with new clubs. This would depend on League discretion and precedent.
• Pursuing Civil Litigation for Damages: In extreme cases, players may seek civil remedies for financial loss resulting from Royal AM's expulsion, although this would be a lengthier process."
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Dinat also clarified that players are likely to be declared free agents should Thwihli Thwahla be suspended or expelled.
"Ultimately, the PSL will need to balance club regulations, player rights, and League integrity in deciding how to handle Royal AM's situation.
"If the club is expelled, player contracts would likely be deemed void, and players would become free agents unless an alternative arrangement is made," he said.