Swallows sold their spot in the Betway Premiership to Gallants in 2024, but have now threatened to cancel the sale.
Gallants reportedly failed to pay an agreed tax liability and have now been taken to court to resolve the matter.
SABC Sport reported: "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."
A club statement from Gallants read: "Marumo Gallants FC confirms that the Club received court documents relating to a matter by Moroka Swallows last Friday.
"At this stage, as the matter is now before the court, the Club will not be making any further public comments nor will it be participating in media interviews regarding the issue.
"Marumo Gallants FC respects the legal process and will allow the matter to proceed through the appropriate judicial channels."
"The Club would like to assure its supporters, partners and stakeholders that operations continue as normal. Management, technical staff and players remain fully focused on preparations and ongoing commitments for the remainder of the season," the statement continued.
“Marumo Gallants FC appreciates the continued support and understanding from its fans and partners during this time. Further communication will be issued if and when appropriate.”
Magesi FC and Chippa United battled to a thrilling 2-2 draw at Seshego Stadium while Marumo Gallants fell 1-2 to Golden Arrows at Lucas Masterpieces Moripe Stadium in the Betway Premiership.
Marumo Gallants are reportedly set to appoint Moroccan Jamil Benouahi to replace suspended head coach Alexandre Lafitte.
We take a look at five talking points from the Betway Premiership action last week where valuable points and goals led to surprising shifts on the table.
Marumo Gallants have confirmed that the club have suspended head coach Alexandre Lafitte for "issues relating to a failure to comply with contractual duties".
