DA red-cards Maritzburg’s R27m support for Shauwn Mkhize’s Royal AM

According to Sithembiso Dindi from TimesLive, a rather attractive deal has been proposed for the KwaZulu-Natal (KZN) club. The deal, which is worth an enticing R27m, has been offered to Shauwn Mkhize’s Royal AM in an attempt to persuade the DStv Premiership club to replace Maritzburg United at Harry Gwala Stadium. This sponsorship offer has been put forward by the Msunduzi local municipality and was set to be discussed for approval by its council.

If approved, Royal AM will receive R9m annually over three years from the municipality and will be able to use the Harry Gwala Stadium as a home venue free of charge. This is the same deal that United enjoyed before their relegation from the Premiership at the end of last season, an agreement that is ending due to their drop to the Motsepe Foundation Championship.

Bankrupt Msunduzi municipality did not follow protocol in awarding football club sponsorship deal to the tune of R27m over three years, says party

Royal AM, owned by businessperson Mkhize, have an expensive base at their Royal Ranch in Pietermaritzburg, but have played their home games in Durban, mostly at Chatsworth Stadium, since their purchase of Bloemfontein Celtic’s top-flight status in August 2021.

In a document shared with Msunduzi’s councillors and which TimesLIVE has a copy of, the municipality confirms that the agreement with Maritzburg United is being terminated. “The most recent three-year sponsorship agreement between the Msunduzi municipality and Maritzburg United (MUFC) was due to expire at the end of 2024,” said the document. “Due to the relegation of MUFC, the sponsorship agreement will be terminated as one of the conditions of the sponsorship was for the club to remain in the Premier Soccer League (PSL).”

In the proposal signed by City Manager Lulamile Mapholoba, it is said that the partnership with Maritzburg boasted gross multimedia exposure to the value of R55.2m per season. The municipality expects a similar level of exposure with Royal.

The city has recommended that the council grants approval for the sponsorship for three years, starting in the 2023-24 financial year. “The amount for the proposed sponsorship agreement for a period of three years is R9m per annum (VAT Exclusive), (plus) CPI in the two (2) outer years,” states the document. “In addition to the cash sponsorship, the agreement will include the cost for the annual maintenance of the Harry Gwala Stadium to keep it in compliance with PSL standards.”