Bloemfontein Celtic, famously one of the best-supported clubs in the DStv Premiership, are to join those relegated to the scrap pile when an official announcement is made by the Premier Soccer League (PSL) this week.
The PSL have called a press conference on Tuesday at their Parktown offices, where the league will address, "1. Legal Matters, 2. The sale of clubs; 3. The 2021/22 season", the league said in a statement yesterday.
But documents in possession of Sunday Times have confirmed that the sale of Celtic by Max Tshabalala, who took ownership from Jimmy Augousti in 2014, to Royal AM owner and flamboyant Durban businesswoman Shauwn Mkhize has been approved by the league's executive committee (exco).
The exco has also approved the sale of Royal's GladAfrica Championship (NFD) status to Lawrence Mulaudzi, who will resurrect his Tshakhuma Tsha Madzivhandila (TTM) in the second tier.
Celtic will join two other household-name clubs - Ajax Cape Town and Bidvest Wits - to have met their demise in the last 18 months.
Mulaudzi bought the Premier Division franchise of 2016-17 champions Wits from Bidvest ahead of the 2020-21 season, renaming the 99-year-old club TTM and relocating it to Limpopo.
The businessman ran into well documented financial troubles in the top-flight and sold the team on to Abram Sello in January.
Ajax never recovered from their relegation to the NFD in 2017-18 following a court battle for fielding ineligible player Tendai Ndoro.
Ajax Amsterdam sold their 51% share in the club in 2020 and they now battle in the NFD as Cape Town Spurs.
It was also from a lengthy court wrangle that Celtic met their demise, but in this case indirectly.
AM settled for buying a franchise after a court battle to be reinstated champions of the GladAfrica league suffered several defeats. This followed an arbitration award of three points to Sekhukhune United, who then won the NFD and automatic promotion to the Premiership.
Tshabalala has had his club on the market for a number of years, but failed to find a buyer who would keep it in Bloemfontein.
A letter from the PSL is addressed to Tshabalala as "the seller"; and to Nozipho Fortunate Ngubo as "the acquirer". Ngubo is Mkhize's sister.
This was apparently to circumvent Article 14.4 of the NSL Handbook that: "No person or entity may, directly or indirectly, acquire an interest . in a Member Club … if he or it has, directly or indirectly, held an interest … in another club under the jurisdiction of the League in the 12 (twelve) month period preceding the transaction."
The PSL's letter reads: "The application to approve the transfer of … Bloemfontein Celtic FC from the seller to the acquirer, [and related approvals in respect of a name change (to Royal AM FC) and relocation (to Chatsworth Stadium)] served before the executive committee today.
"… The transfer has been approved on the basis sought ... "
A separate screenshot of another letter states the exco has approved the sale of Royal to TTM.
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