- Marumo Gallants agreed to pay R40-million for Moroka Swallows’ Premiership status in May 2024 but allegedly broke the payment terms.
- Moroka Swallows’ lawyers claim Marumo Gallants failed to pay R10-million for Sars tax and didn’t account for asset sale money.
Moroka Swallows are taking Marumo Gallants to court. The Soweto club wants to cancel the sale of its Premiership status.
Swallows want to force the Premier Soccer League to recognise them as the rightful owners of the top-flight status again.
The two clubs signed a deal in May 2024. Under the agreement, Gallants agreed to pay R40-million for Swallows’ Premiership status.
According to SABC Sport, Swallows say Gallants broke the contract. The club claims Gallants didn’t pay the full price they agreed to.
The payment deal was supposed to work in three parts.
The first part was R20-million in cash upfront. This money was paid by Gallants.
The second part was R10-million to settle a Sars tax bill that Swallows owed. This was never paid. The tax bill has now grown to about R13-million with penalties and interest added.
The third part was R10-million to cover player and staff debts that Swallows owed. This has only been partly paid. The money came through league grant deductions.
But Swallows’ lawyers say there are more serious problems with the deal.
The lawyers say Gallants also failed to account for money from selling a separate National First Division status. This NFD status is now known as Leruma United.
The NFD status had been given as security for the debt owed by Swallows.
The lawyers also claim fraud may have been committed in the transaction. They say Swallows’ owners were not told about the NFD transaction.
Swallows have formally notified both the PSL and Safa about the court case they have launched.
The sheriff of the court is expected to engage both parties in the coming days to try to resolve the dispute.
Pictured above: Marumo Gallants supporters.
Image source: @_Marumogallants
