This comes after the Bloemfontein-based club allegedly reneged on the terms of their contract and failed to pay the full purchase price as agreed in writing.

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.

READ: Gallants ordered to pay over R3 million of Moroka Swallows debt

Whatever was paid so far was done in sporadic amounts, with the overall surplus meant to be paid back to Swallows.

According to correspondence from Swallows’ attorneys, the failure to honour the full payment terms prompted the issuing of a formal letter of demand in January, giving Gallants 10 days to settle the balance of approximately R15 million, failing which the agreement would be cancelled.

The Bloemfontein-based side have allegedly failed to respond or make payment, resulting in a formal cancellation notice being issued, with the sale agreement thereby cancelled due to breach of contract.

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.

It is further understood 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.

Should the court grant the relief sought, the ruling would pave the way for Swallows to regain full control of their top-flight status, and indications suggest the club could seek to sell the status to a different buyer.

Gallants have thus far failed to respond to all the letters and correspondence as seen by SABC Sport.

OLUHLE SIYO

South Africa qualifies for World Cup Super Six, but more is required

Editors Pick