Rangers have been banned from signing players for 12 months by the Scottish Football Association after being found to have brought the game into disrepute during Craig Whyte's period in charge.
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The SFA convened a judicial panel to look into Rangers' actions under Whyte, who bought the club from Sir David Murray last May but plunged them into administration. Whyte has also been banned for life by the governing body from holding any position in Scottish football.
The transfer embargo, which applies to everyone besides youth players, was imposed by the SFA after it found Rangers and their owner guilty of a series of charges. There were further punishments of fines totalling £160,000 for the club – payable within 12 months – and £200,000 for Whyte – due within 30 days. Rangers are almost certain to appeal against their sanctions.
The transfer penalty will have a clear impact on Rangers' search for new ownership. Despite having control of affairs at Ibrox since mid-February, the club's administrators are still to declare the preferred bidder for Whyte's 85% stake. As well as being unable to sign new players, any new owner of Rangers will inherit a scenario where a clutch of first-team members can depart Ibrox for knockdown transfer fees this summer. Leading players had such contract clauses inserted when agreeing to take substantial wage cuts shortly after the onset of administration.
Paul Clark, Rangers' joint-administrator, said of the SFA ruling: "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.
"During this hearing the club produced compelling evidence from a number of sources that following his takeover Craig Whyte ran the club in a thoroughly unaccountable manner, rather than adhering to a long-established and proper form of corporate governance. 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. It has already been decided he is not a fit and proper person to run a football club. However, for Rangers a ban on signing players will seriously undermine the club's efforts to rebuild after being rendered insolvent."
Whyte said: "Tell me how it is going to affect me? I couldn't care less. It makes no difference to my life whatsoever – and good luck collecting the money.
"It is very harsh on Rangers. I am surprised at how harsh the SFA have been on a club which is going through tough times at the moment. Stewart Regan [the chief executive] and Campbell Ogilvie [the president] should resign and get out of Scottish football. The SFA want to kick Rangers when they are down and I hope people remember that. They are playing to the media."
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