Drip’s liquidation woes: Is embattled Moroka Swallows affected?

DStv Premiership side Moroka Swallows’ financial woes could be piling up after reports that the club’s technical sponsor, Drip Sportif, could be facing liquidation.

According to Sunday World, WideOpen Platform (a Johannesburg-based advertising company) has applied for Drip to be liquidated.

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LEKAU SEHOANA’S DRIP BRAND FACING POSSIBLE LIQUIDATION

Drip, which is a sportswear brand by Lekau Sehoana, reportedly owes WideOpen Platform R20 million for advertising services.

The advertising company filed the legal documents through the Johannesburg High Court, seeking an order to wind up Drip as it claims the clothing company is insolvent and unable to service its debts

“The respondent is currently indebted to the applicant in the sum of R20 442 285.06 with interest thereon at the prevailing prime interest rate calculated from 1 June 2023 to the date of payment, both days inclusive,” read the court papers.

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HOW DRIP’S LIQUIDATION TROUBLES ARE ‘LINKED’ TO MOROKA SWALLOWS

Drip and the Dube Birds signed a partnership in August last year. This came after the club and its previous sponsor, Umbro, parted ways.

The sportswear brand’s financial issues add to Swallows’ woes, as the club is also experiencing financial strain.

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In December 2023, Maswaiswai failed to honour their league fixtures against Mamelodi Sundowns and Golden Arrows after players went on strike due to alleged unpaid salaries.

As a result, the OG Soweto Giants were slapped with a hefty sanction from the league’s Disciplinary Committee. This month, the club (which is under David Mogashoa) instituted a virtual disciplinary hearing against the 22 players who did not pitch for the two matches. All 22 of players were released.

SPONSORSHIP DEAL WITH GOLD RUSH

The football club’s financial troubles also stem from a missed opportunity to land a lucrative sponsor last year.

According to the SABC, Gold Rush – a company involved in hospitality and gambling – had concluded a huge deal worth around an estimated R20 million per season with Swallows, however, it fell through.

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“The PSL has this declaration that betting companies must sign if they want to sponsor a club, but Gold Rush was not comfortable signing it and instead tried to get its other wing in Hospitality and Casino to lead in this deal.

“We agreed, and I submitted that document to the PSL, requesting approval for sponsorship on Casino and Hospitality, but [PSL’s Head of Legal] Michael Murphy scrutinised the document and said it won’t work because they have a betting division. 

“So he insisted they needed to sign the declaration, and this is where the problem was,” Mogashoa told the public broadcaster.

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