Eintracht Frankfurt emerged victorious from a penalty shoot out in Seville after the game finished 1-1 over 120 minutes.
It was a result that has ramifications going into next season's European campaign.
What does defeat mean?
If Rangers had won they would have earned group stage qualification for the Champions League and taken their place alongside the likes of Real Madrid, Paris Saint-Germain and Bayern Munich in Pot 1. However, that spot, reserved for the Europa League winners, will be taken up by Eintracht Frankfurt.
Due to the improving performances of Scottish clubs in Europe, helped massively by Rangers, Scotland now has two Champions League entrants. Champions Celtic have earned group stage football and will be in Pot 4. As runners-up, the Ibrox side will now enter the League Path in the third qualifying round.
What will Rangers have to do to reach the group stages?
Simply put, they will have to win two two-legged ties. It is something they have proven very adept at in the Europa League over recent seasons but they were defeated by Malmo last year which saw them drop into the Europa League.
Who can Rangers play?
The good news is the club are seeded for both the third qualifying round and if they get through, the play-off round. It means they avoid Benfica.
In the third qualifying round, Sturm Graz and Union Saint-Gilloise are possible opponents.
Dynamo Kyiv and PSV Eindhoven could be opponents in the play-off round.
What happens if Rangers reach the group stage?
Due to their coefficient, they will either be in Pot 3 or Pot 4, with the former quite likely.
Pot 3 would see them avoid the likes of Borussia Dortmund, Napoli, Bayer Leverkusen and Red Bull Salzburg.
Teams confirmed in Pot 1: Eintracht Frankfurt, Real Madrid, Bayern Munich, Porto and Paris Saint-Germain.
Teams confirmed in Pot 2: Chelsea, Barcelona, Juventus, Atletico Madrid, Sevilla, RB Leipzig.
Those two pots will also include Liverpool, Manchester City, AC Milan, Inter Milan and Ajax.
How much money is at stake?
If Rangers had won the Europa League final they would have been guaranteed at least £25million from the group stage. That’s what is on offer for the Ibrox club.