The International Swimming League (ISL) says it is confident of finding a solution after content agency LiveWire Sport threatened the organisation with legal action over alleged unpaid debts.
LiveWire Sport claim they are owed a six-figure sum for services they provided during the inaugural season of the ISL, including social media and content production.
LiveWire Sport claim the ISL fell behind with payments in December 2019, and they say that despite the ISL acknowledging the debt and saying they will pay the full amount, they feel they have to consider taking "drastic action" to recoup money owed.
However, the ISL has told insidethegames they are "puzzled" by LiveWire Sport's statement and claim they are in "proactive discussions" to structure a payment plan including compensation.
In its statement, London based LiveWire Sport said: "In our nine-year history we have never been forced into considering such drastic measures and it would be incredibly disappointing to have to take these steps.
"ISL has launched season two of the league but has yet to meet their obligations to LiveWire Sport for season one.
"It is unfortunate that things have got to this stage, but we have been left with no choice but to look at recovering the debts owed to us by ISL through our lawyers.
"We have been in close contact with another supplier from season one and we will continue to work with them.
"We look forward to seeing ISL meeting all of their remaining obligations to LiveWire Sport and that other supplier from season one without further delay.
"As a company, LiveWire Sport tries to turn negative experiences into learning experiences and so over the coming weeks we will share some of the things we have learned along the way.
"We will keep the industry informed of developments through a number of platforms."
In response to the allegations, the ISL provided insidethegames with the following statement.
An ISL spokesperson said: "’We are puzzled to receive this information as we are in proactive and constructive discussions with LiveWire to structure a payment plan including compensation for this unfortunate delay.
"Against all the odds, we have managed to safely and successfully launch season 2020 in Budapest despite coronavirus decimating the sports events business, ensuring our athletes receive much-needed financial support in these difficult times.
"With all our partners we have found solutions and we are sure a solution will be found here as well."
Energy Standard won the inaugural season of the competition, which sees more than 300 swimmers from 50 different nations competing alongside each other and earning points for their teams based on their finishing positions in different races.
This season's competition is taking place over the course of five weeks at the Duna Arena in Budapest, Hungary within a secure racing bubble, owing to the coronavirus pandemic.
So far four matches have been completed, with two wins for Cali Condors as well as victories for Los Angeles Current and London Roar.