SABC Sport reports that Swallows have cancelled the sale agreement and, if enforced by the courts, that will leave Gallants without a topflight status and the PSL in a bind.
Swallows, which was previously owned by current Upington City president David Mogashoa, have already approached the High Court to enforce the reverting of the Gallants status back to the Soweto club.
The suggestion is then that Swallows would find another buyer, rather than re-enter the league.
According to the report, R20-million of the R40-million sale price was paid up front, but a further R10-million that had been earmarked to the South African Revenue Service (SARS) for a tax debt and another R10-million to cover bets with players and staff, has not been settled.
Gallants, who moved from Limpopo to Bloemfontein when the deal was signed, have reportedly not replied to lawyers from Swallows, who had given them 15 days to settle their outstanding debts or face a day in court, which is now coming.
It is another nightmare for the PSL after the 2024/25 campaign in which Royal AM dropped out midway through as the club was wound following outstanding monies owed to the SARS.
Thie result to that point were annulled and each team only played 28 games in the league instead of the usual 30. The knock-on effect of that meant sponsors and the broadcaster did not get full value for the money they put into the league.
But it was also deeply embarrassing for the image of the local game and the PSL can ill-afford another such scenario where a team changes hands midstream because of financial issues.