EXPLAINED: The Swallows vs Gallants PSL licence fight and what it means for SA soccer
Moroka Swallows and Marumo Gallants are locked in a High Court battle over the sale of the Soweto club’s PSL status, a dispute that could reshape the Betway Premiership landscape.
Image: Created by ChatGPT
Moroka Swallows and Marumo Gallants are locked in a bitter legal battle over the sale of the Soweto club’s Premier Soccer League (PSL) licence.
Swallows, citing unpaid debts and alleged breaches of contract, have cancelled the 2024 deal that allowed Gallants to take over their top-flight status, and are now seeking a court order to reclaim their place in South Africa’s top division.
The dispute has thrown Gallants’ future – and the league’s structure – into uncertainty.
IOL Sport unpacks the drama and what it could mean for South African football.
Background – How the sale happened
In May 2024, financially troubled Moroka Swallows agreed to sell their Betway Premiership status to Marumo Gallants for around R40 million. The deal was structured in three parts: R20 million paid upfront, R10 million designated to settle Swallows’ tax obligations with SARS, and R10 million earmarked for outstanding player and staff debts. This transaction allowed Gallants – then in the second-tier National First Division – to secure a PSL licence and compete at the top level, while Swallows exited the league amid mounting financial pressure.
The sale sparked debate in South African football circles because it treated a historic club’s league status as a commercial asset. Swallows, a club with decades of top-flight history, was effectively transferring its identity and league position to Gallants, a move that highlighted how financial strain can reshape the traditional structure of the PSL.
The dispute – what went wrong
The deal has now collapsed into a legal dispute. Swallows claim Gallants failed to meet key payment obligations, particularly the portion meant to cover tax liabilities with SARS, which has grown due to penalties. The player and staff debt portion was only partly settled via PSL grant deductions. Additionally, Swallows allege that Gallants sold a second-tier franchise that had been ceded as security for the unpaid balance without informing them, potentially compounding the breach.
In response, Swallows cancelled the sale and launched an urgent High Court application, requesting that the PSL restore their top-flight status and strip Gallants of ownership of the licence. Gallants reject the allegations, arguing that outstanding amounts were offset through league grants and that they have met their contractual obligations. The case now hinges on whether the court will uphold Swallows’ claim and what remedies can be enforced.
Implications for South African football
The court’s ruling could significantly reshape the league. If Swallows succeed, Gallants risk losing their PSL status, while Swallows would reclaim their top-flight licence – affecting fixtures, contracts and the competition’s stability.
Beyond the two clubs, the dispute highlights the risks of treating PSL licences as tradable assets. It may push the league to tighten regulations around franchise sales to prevent similar conflicts. Until judgment is delivered, uncertainty hangs over both clubs and the league structure.
Gallants’ response – breaking their silence
Marumo Gallants have confirmed they have received court papers and that the matter is now before the courts. In a brief statement, the club said it would respect the legal process and refrain from further public comment while proceedings continue.
Gallants also moved to reassure supporters and stakeholders that club operations remain stable and that the team’s focus remains on on-field matters, despite the uncertainty surrounding their PSL status.
IOL Sport