Rangers will have to apply for special dispensation to play in Europe next season, according to the Daily Record.
The Ibrox club will fall short of the requirements needed for a Uefa license after incurring financial losses over the last three years.
Under Uefa rules on Financial Fair Play, clubs cannot exceed €5million in losses over a three-year assessment period.
Uefa.com explains the rules as: “To be exact, clubs can spend up to €5million more than they earn per assessment period (three years). However it can exceed this level to a certain limit, if it is entirely covered by a direct contribution/payment from the club owner(s) or a related party. This prevents the build-up of unsustainable debt.”
Rangers have incurred losses of £18.9million over the past three years.
However, it does not necessary mean Rangers will be denied entry into Europe, as teams in similar positions have been regularly granted special dispensation.
It will be up to Uefa’s Club Financial Control Body to decide. The punishment could be as little as a warning or fine.