Rangers administration: Ally McCoist open to drop into Third Division

• ‘I’m leaning towards this drastic measure’

• Club would resign from SPL and join SFL

• SFA sanctions ‘could kill this football club’

The Ibrox manager made the admission 24 hours after the Scottish Football Association announced severe sanctions against Rangers for five breaches of its rules, including a £160,000 fine and transfer embargo which will prevent McCoist signing any new players for the next 12 months.

Speaking on Blues News on Rangers’ official website, an emotional McCoist also attacked the SFA’s Judicial Panel Tribunal for imposing the penalties on the debt-ridden club as administrators Duff & Phelps desperately try to chart a course out of administration and find a preferred bidder, claiming the sanctions could “kill the club”.

Duff & Phelps confirmed yesterday that Rangers will appeal the fine and transfer embargo, and that hearing could take place as soon as next week.

The club has been in perpetual turmoil since owner Craig Whyte – who was personally fined £200,000 and banned for life from any involvement in Scottish football by the SFA on Monday – took Rangers into administration on 14 February.

If Rangers dropped out of the SPL they would have to seek election to the Scottish Football League. If they were elected as new members, the likelihood is they would need to start on the bottom rung of the SFL – the Third Division, alongside clubs such as Annan Athletic, East Stirling and Berwick Rangers.

“Some fans have been suggesting this and I am leaning towards it myself,” said McCoist last night. “Make no mistake about it, it would be an unbelievably drastic measure and it will have an incredible impact on Scottish football – and not for the good.

“But, if they are going to continue to impose sanctions on us and make things extremely difficult for us to defend ourselves, then maybe, just maybe, it might be the right thing. We are hanging by our fingertips. We’re really at the do-or-die stage and I can’t reinforce that opinion enough.”

Directly addressing the sanctions imposed on the club on Monday night – which were defended yesterday by SFA chief executive Stewart Regan – McCoist added: “Plain and simply, I think it is an absolutely shocking decision. I found out the decision last night and I was shocked and absolutely appalled by the way this supposedly independent judicial panel was coming down on us in this form.

“Like everyone else involved – our team, our supporters, our staff and a lot of neutrals – I am staggered at the severity of the punishment. This decision could kill our football club, simple as that. Make no mistake about it.”

A difficult day for McCoist was compounded by him being forced to discipline one of Rangers highest-profile players, Kyle Lafferty. The Northern Ireland striker has been suspended for two weeks – and may have played his last game for the club – for a “breach of club discipline” by failing to report for Rangers’ 3-0 win at Hearts on Saturday.

McCoist explained: “He was in the squad to travel [to Edinburgh] and we were due to leave on Friday to go through to Tynecastle. But there was a failure to show for the travelling party. I phoned him and left a message because I couldn’t get him and I asked him to get back to me. He didn’t do that so I felt there was no other action to take and I didn’t take that action lightly. I think he has been winding us up the wrong way and the supporters and, certainly, the players deserve a lot better from one of their own. I am really disappointed in Kyle’s actions and sadly the thing is it’s unfortunately not the first time.”