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PSL ruling on Royal AM imminent, possible sanctions

With a potential ruling from the PSL imminent, unless Royal AM complies, KickOff discusses sanctions that could befall the embattled club with a law expert.

Royal AM are unable to resume fixtures as the PSL is yet to find common ground with the club's SARS curatorship.

They could not fulfill their financial obligations to players and personnel around the club from December last year, and the League has taken matters into their own hands and have asked the club, through their curator, to give financial guarantees to the PSL, in "a letter of comfort", before their suspension of fixtures could be uplifted.

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The KZN side made an application to the North Gauteng High Court recently to compel their curator to issue this letter of comfort. However, their application was turned down.

Speaking to this website on Tuesday Royal AM General Manager Richard Makhoba claimed they have complied with the financial obligations required by their curator and is confident the matter will be resolved.

However, that decision will rest with the PSL Executive Committee, who have been engaged in meetings, to hand out a ruling, with a backlog of fixtures affecting the integrity and relationship with sponsors.

"Under the NSL Handbook, the PSL Executive Committee (ExCo) has broad discretionary powers to act when a club fails to meet its obligations, particularly where financial instability affects its ability to fulfill fixtures," Naeem Dinat, Associate Attorney and Sports lawyer at Yingke Africa SA, told KickOff.com.

"While the rules do not specify a fixed time-frame for action in cases of prolonged postponements, the PSL has already exercised its authority by suspending all Royal AM matches until further notice.

"If the club remains unable to provide the required letter of comfort from the SARS-appointed curator, the ExCo will be compelled to escalate the matter," Dinat explained.

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"The NSL rules allow for various disciplinary measures, which may include:

• Docking points for failure to meet fixture commitments.

• Imposing fines or other financial penalties.

• Forcing the club to forfeit matches, awarding victories to opposing teams.

• Suspension or expulsion from the PSL, particularly if the club is deemed financially unsustainable.

"The final decision will depend on Royal AM's ability to resolve its financial and compliance issues within a reasonable period," Dinat continued.

"If no resolution is reached, the PSL will likely make a definitive ruling before the end of the season to maintain the League's

integrity and scheduling consistency," he concluded. 

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