Update: Gallants Face Massive Blow In Swallows Court Fight

(Photo by Daniel Hlongwane/Gallo Images)

The dramatic fallout between Moroka Swallows and Marumo Gallants has taken a decisive turn, with indications that Gallants could emerge as the biggest losers if the courts side with the Soweto outfit.

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At the centre of the dispute is the structure of the R40 million transaction. An initial R20 million was paid by Gallants, allowing them to assume Swallows’ topflight status and compete in the PSL for nearly two seasons. However, further payments, including R10 million earmarked for SARS to settle tax debt and another R10 million for outstanding player and staff salaries, were allegedly not settled in full.

The SARS portion is understood to have escalated to approximately R13 million due to penalties and interest, while the player-related obligations remain partially unpaid, with some deductions reportedly made via PSL grant allocations.

One key point emerging from the dispute is that Gallants are unlikely to recover the initial R20 million already paid. Having already enjoyed the benefits and commercial value of PSL participation for almost two seasons, it would be difficult to reclaim funds tied to a status they have effectively utilised.

Another significant development is that Swallows are not believed to be intent on reviving the Dube Birds for long-term competition. Instead, information suggests their primary objective is to have the deal legally cancelled, regain their PSL status, and immediately seek a new buyer in order to recover funds and settle outstanding debts.

The issue of player debt further complicates matters. In transactions involving the purchase of a PSL club, the acquiring party assumes not only the status but also its financial liabilities. That would place responsibility for outstanding player and staff debts squarely on Gallants and their ownership.

To compound matters, there are allegations surrounding the sale of a National First Division status now trading as Leruma United, which was allegedly ceded as security. Swallows’ legal representatives claim they were not informed of that transaction, raising additional legal concerns. Should the court rule in Swallows’ favour, the fallout could potentially create a domino effect impacting that status as well.

In summary, if the High Court sides with Swallows, Gallants stand to lose on multiple fronts: the R20 million already paid, liability for outstanding debts, and potentially their Betway Premiership status. It would represent a devastating outcome for the Bloemfontein-based outfit, and one that could reshape the landscape of the league once again.

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