The biggest dilemma facing the PSL in the Royal AM case – Legal Expert opinion

This is the view of a leading Sports Law expert on matters relating to football in the country Mandla Tshabalala of Mandla Tshabalala Inc.

The PSL has suspended Royal AM’s Betway Premiership and Nedbank Cup fixtures indefinitely, as they have yet to receive a letter of comfort from a curator on their commitment to host these games.

Tshabalala analyses the PSL's biggest challenge.

"I think PSL, I just feel sorry for them, they find themselves in a dilemma I think they've never found themselves in, in the history of the Premier Soccer League. I think the biggest challenge is that there are third parties that are now involved in this business of football which is the South African Revenue Services,” Tshabalala said.

“The PSL or the NSL mandate is to make sure that there are matches, it's to run the business of football. Now, with the interference of the third party, it might prohibit them from ensuring that all the teams participate like in this case.

“I think the problem that we're facing now is that there is a third party that is in charge of Royal AM which is a curator appointed by SARS. Remember, the club is an asset and the owners are owing SARS.

“So, SARS attached it so that they recover their money. Now the dilemma that the NSL is facing is there is a commitment that they make to the sponsors that in the PSL for example we're gonna give you so many games to televise.

“When I'm referring to sponsors, I'm specifically referring to the TV rights. So, broadcasting, there's so many matches that are given to you to broadcast now if you don't fulfil that obligation, it could easily be a breach of contract."

READ: Poor start at Loftus cost Orlando Pirates argues Jose Riveiro

Royal AM’s owners owe SARS over R40 million, and the club has been run by a curatorship since last month after they obtained a preservation order over their assets. This past week, a court application by the club against the PSL, SARS and the curator to compel them to play their matches failed.

Under rule 57.13 of the NSL Handbook, the league can impose sanctions that lead to suspension, expulsion, and relegation of the clubs, but it’s also not a straightforward process according to Tshabalala, about this Royal AM matter.

"Well, there's no easy solution, it will take a lot of engagement but eventually PSL will have to make a decision because especially the NEC, they'll have to make a decision because it's within their powers,” he added.

“The rule says you'll abide by the rules and regulations and the decision of the NEC. So, the NEC eventually they'll have to show leadership and they have to take a decision because right now the issue of Royal AM has become an embarrassment.

“Even though it's not that big of an embarrassment but it is an embarrassment. I think PSL were very smart in not jumping to the conclusion, finding a solution that could favour everyone because that becomes very dire.

“When PSL decides to expel the team for example, now they'll be left with only 15 teams, now that becomes a breach of contract again because you've promised the broadcasters 16 teams with so many games, now that means you're gonna shortfall on the other games. “What does it say now about the grant that they've received because once you expel them it almost becomes like they never existed this season."