Moroka Swallows' sponsor Drip Sportif are reportedly embroiled in a legal battle and could potentially face liquidation. Check it out!
What's the story?
The latest financial struggles at Moroka Swallows has seen them part ways with over 20 players following a payment dispute that led to them forfeiting two DStv Premiership games in December.
Similar to Swallows' crippling financial issues, Drip Sportif, are reportedly facing the possibility of liquidation according to Sunday World.
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Let's take a closer look...
Swallows sponsor in financial trouble
Drip Footwear, the Johannesburg-based streetwear brand, is said to be potentially facing liquidation after reportedly failing to pay WideOpen Platform more than R20 million in advertising services, reports Sunday World.
The outdoor media advertising company, WideOpen Platform is said to have filed the papers in the high court in Johannesburg according to Sunday World, seeking an order to say that Drip "is insolvent and unable to service its debts," as mentioned by the Sunday Times.
Drip announced a groundbreaking partnership with the Dube Birds back in August, replacing Umbro. They became the only SA streetwear brand to sponsor the kits of a DStv Premiership club, promising an exciting football and fashion fusion.
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Drip owner Lekau Sehoana is also reportedly being sued by WideOpen Flatform, with reports stating that he's failed to pay the debt after signing a surety agreement for the entity.
The WideOpen Platform managing director Tomer Cohen told the Times that Drip should be liquidated in terms of the Companies Act, citing its inability to pay for advertising services rendered to the brand that's popular for its sneakers.
It was revealed in the Sunday Times report that Sehoana signed an acknowledgement of debt, after reportedly neglecting to send money, with Sehoana and Drip seemingly admitting that they owed WideOpen the enormous sum in the acknowledgment of debt paperwork
"Both Drip and Sehoana undertook to pay a total of over R3.6-million in three instalments of over R1.2-million from June 30 last year. They also made a commitment to pay just under R6 million in three instalments of under R1.9 million from September 30, and promised to pay almost R12 million in three instalments of under R4 million from December 31," revealed the court documents obtained by Sunday World.
Drip's reported financial troubles adds to Swallows' woes, with the OG Soweto giants having their lowest point since their revival under chairman David Mogashoa, when a strike by players demanding early payment of their December salaries, leading to the cancellation of two DStv Premiership fixtures against Mamelodi Sundowns and Lamontville Golden Arrows.
Prior to forfeiting of these games, the club already had challenges of late payments of salaries for previous months, and Mogashoa told SABC Sport says that they will be looking at downscaling their operations quite significantly.
Head coach Steve Komphela hinted at the club's pay dispute with players before their loss against SuperSport United, saying the players had not trained for 10 days, and he had to beg the players to honour the fixture against Gavin Hunt's men.
The club has released over 20 players following this payment dispute, including blockbuster signing Andile Jali.
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