Graeme Souness believes Dave King is paying for his failure to keep promises made to Rangers fans regarding £30m investment to challenge Celtic.
The Ibrox club have been disappointing since returning to the Scottish Premiership, currently sitting in third place, eight points behind Glasgow rivals Celtic who have three games in hand.
Souness insists the biggest problem has been a lack of investment in the first-team, which comes back to King’s pledge to pump £30m into the team to compete with Celtic.
He said: “Yes, but my understanding is the chairman saying he’s going to give money is where your problem lies.
“Where the problem arises for Rangers supporters now is if the owner has come out and said he’s going to put money in and he hasn’t, then he has caused himself a problem.
“If you make promises to football supporters it makes life doubly difficult if you don’t keep them.
Souness insists he has sympathy for current boss Mark Warburton because the Englishman doesn’t have money to compete at the very top of the division.
He added: “The manager hasn’t been given any chance. They don’t have any money, that’s the bottom line.
“The lower leagues in England if you are talking about the Championship, Rangers can’t afford players in that league. I’d suggest they’d struggle to pay what’s in League One too.
“That’s where they are right now and that’s the handicap they have.”