Rangers owner Craig Whyte was Monday banned for life from any involvement in Scottish soccer and a one-year transfer embargo was imposed on the club by the Scottish Football Association (SFA).
The transfer embargo strikes a massive blow to the floundering club, which has been in administration since February with the prospect of having to pay tens of millions in taxes.
Rangers were also fined £160,000 (US$258,000) while Whyte, who had already been deemed unfit to hold an official position in the game by the SFA, was handed fines totaling £200,000.
The SFA said its judicial panel would issue reasons for their findings in "early course," while both parties have three days to appeal following receipt of those reasons.
Financial advisory and investment banking firm Duff and Phelps, joint administrators of Rangers Football Club, condemned the ruling as "draconian" in a statement Monday night.
"All of us working on behalf of the club are utterly shocked and dismayed by the draconian sanctions imposed on Rangers in respect of these charges," said Paul Clark, of Duff and Phelps.
"It appears that on one hand the disciplinary panel accepted our central argument that responsibility for bringing the club into disrepute lay with the actions of one individual -- Craig Whyte -- as is evident from the unprecedented punishment meted out to him.
"The thrust of the charges against the club focused on non-payment of payroll taxes and evidence was produced that all such decisions in this area were taken by Craig Whyte during his tenure.
"Given this evidence, it is difficult to comprehend that the disciplinary panel has seen fit to effectively punish the club even more heavily than Mr. Whyte."
Clark added that a ban on signing players would "seriously undermine the club's efforts to rebuild after being rendered insolvent," and could impact bidders' proposals to acquired the cash-strapped club.
Whyte was defiant when asked for his reaction to the punishment on him and Rangers.
"Tell me how it is going to affect me? I couldn't care less," he said. "It makes no difference to my life whatsoever -- and good luck collecting the money.
"It's a joke."
