The PSL has confirmed the sale of Bloemfontein Celtic with the club to be renamed Royal AM just days before the start of the 2021/22 DStv Premiership campaign.
PSL chairman Irvin Khoza has confirmed that Bloemfontein Celtic has been sold to Royal AM in accordance with article 14 of the National Soccer League handbook.
"The main point is that the transition must be seamless, because there are a lot of stakeholders affected by this transition," Khoza said during a press conference on Tuesday.
"There is a very important issue that we discussed, the future financial stability [of the club and of the league as a whole]. This is a matter that faces us every day in football.
"We want to protect the history of a club, but the issue of sustainability is a problem. Regardless of our discomfort when we deal with transitions sometimes, we must make sure we are doing the right thing.
"We must consider two things, the issue of the insolvency of the club, the risk of insolvency. If somebody says 'I cannot afford.' What do you do?
"As a league, we have an obligation that the league must start with 16 teams, we’ve got commitments with sponsors, tv, etc. We don’t have too many in our football with deep pockets. That’s why it almost took us three days to discuss this matter.
"It is very important that the players and other employees must be protected. In a case of insolvency, people lose jobs."
The controversial transaction will see Royal AM take ownership of Celtic's PSL status and relocate the club from the Free State to Kwa Zulu Natal, while Royal AM's GladAfrica Championship status has been acquired by Tshakhuma Tsha Madzivhandila.
Scroll through the gallery to see which Bloemfontein Celtic players have recently signed new contracts