Gallants allegedly reneged on the terms of their contract and failed to pay the full purchase price as agreed in writing.
Moroka Swallows have reportedly cancelled the sale of their Betway Premiership status to Marumo Gallants and are now seeking a court order to enforce the termination.
According to SABC Sport, the decision comes after Gallants allegedly reneged on the terms of their contract and failed to pay the full purchase price as agreed in writing.
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“The public broadcaster has seen court documents in which Swallows are asking the High Court to direct the Premier Soccer League to recognise the franchise as reverting to the Soweto outfit, which would effectively strip Gallants of ownership of the status.
“At the centre of the dispute is a sale agreement signed in May 2024, in which Swallows sold their Betway Premiership status to Gallants for a fee of R40 million.
“The payment structure was broken down as follows: R20 million cash up-front, which was paid; R10 million earmarked to settle a SARS tax liability, which remains unpaid and has since ballooned to approximately R13 million, including penalties and interest.
“A further R10 million was to cover player and technical staff debts, which has only been partially settled through deductions from PSL grant payments,” reported the public broadcaster.
SABC Sport further reported that Swallows’ legal representatives further allege that Gallants failed to account for proceeds from the sale of a separate National First Division status – now known as Leruma United – which had been ceded as security for the debt.
“The attorneys also claim that fraud may have been committed, with Swallows’ owners not informed of the NFD transaction.”
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It is believed that both the PSL and SAFA have been formally notified, and that the sheriff of the court is expected to engage both parties in the coming days as part of the legal process.
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