Rangers have filed papers at the Court of Session in Edinburgh signalling their intention to appoint administrators.

The papers are only the first step in a formal administration process but look likely to set into motion a chain of events that have significant implications for the team.

We've put together a layman's guide to the rules and regulations regarding administration from the authorities concerned and answered some of the key questions that could apply to the Ibrox club.

So are Rangers in administration now?

No, what has happened today is that the club has said that it intends to appoint administrators. What happens now is that a period of consultation with creditors begins and the club will try to put its affairs in order.

So will punishments and sanctions now be applied by sporting bodies?

No, sanctions would only be applied if an administrator is appointed. However, it does appear likely that will happen.

So would the club be deducted points?

At the point when administrators are appointed, Rangers would be subject to the Scottish Premier League rules on “insolvency events”. That would mean a 10 point deduction would be applied. The only way a club can be deducted more than 10 points is if it goes into administration twice in the same season.

I had heard that the club would be relegated to the Third Division if they “went bust”. Is that not the case?

No, the league sanction imposed by the SPL is 10 points per insolvency event. The Scottish Football league is a separate body and relegation to on of their divisions is not a possibility.

When will they lose the 10 points?

The points would be deducted immediately.

Can Rangers appeal the points deduction?

Only if it can prove it did not go into administration. Having already confirmed that they have lodged paper with the Court of Session, that is unlikely to happen.

What happens if administration lasts over more than one season?

If a club begins next season in administration, they will begin on minus 10 points.

What happens if a club goes into administration twice in one season?

Ten points are docked each time a club goes into administration, unless the events are linked. It is up to the SPL board to decide, this can be appealed.

Will the club still be able to sign players?

No. The only exception is if a team requires an emergency goalkeeper. This means no permanent transfer and no loan signings.

Can they sell players?

There are no rules preventing the sale of players. However, the transfer window in the UK is closed and players could only transfer to countries where the window is open. That would apply in the case of Russia and Australia for example, though the registration window in both those countries closes this week.

There is scope to apply for special dispensation to sell outside transfer windows but that requires the approval of both FIFA and the national governing body, in this case the SFA.

Portsmouth had tacit approval for a similar request previously but it was blocked by the FA.

What sanctions could the  Scottish Football Association impose?

The Scottish FA's Judicial Panel has the power to suspend or terminate the membership of any club which goes into administration. This has never happened.

Alternatively, the SFA can instead choose to “censure, fine, sanction and/or penalise the member in such manner as it considers appropriate”. This has nothing to do with points deductions. The SFA has never exercised this power.

Another option available to the SFA is to exclude a club from the Scottish Cup. This is a new provision which first appeared in the organisation’s articles of association in the 2011/12 season. As a new rule, it has no precedent and it is not clear what events would trigger action under the rules in this case.

Will UEFA do anything?

Rangers need a UEFA club licence to play in the Champions League or Europa League next season, provided they qualify.
Administration itself does not automatically exclude a club from receiving a licence. However, the criteria is complex and detailed and the likelihood of a club in administration satisfying the requirements for a licence are low.

The club would have to prove it owes no money to other clubs, to its employees, and to HM Revenue and Customs.
Additionally, the club would also have to prove to the SFA it is likely to survive until the end of the season in which the licence applies to. Club licenses are valid for one season and are granted at the start of each season.

How would Rangers exit administration?

A Company Voluntary Arrangement (CVA) is drafted for a club to try and reach an agreement with its creditors. Clubs must agree with those it owes money to over how much to pay back, and over what period of time.

Rangers have already drafted a CVA and consulted with HMRC over the details as they relate to the club’s tax tribunal.

Everyone who is owed money is then invited to vote on the proposal. A 'yes' vote is required from creditors up to 75% of the value of the overall debt.

That vote would not only include HMRC but also Rangers owner Craig Whyte, who is owed money relating to his takeover last may. The meeting would also involve any other creditor owed money by the club, possibly including other clubs.

How long would it take before the club is out of administration?

If a CVA is approved, creditors have a period of 28 days to register their opposition to the decision.
If there is no opposition, Rangers would exit administration and continue in its current form, paying back its creditors over the agreed period of time.

What if the club fails to reach an agreement?

Rangers may try again to reach a satisfactory agreement with its creditors. But, if is unable to agree a deal, the company would be dissolved and the club would cease to exist.

There is an alternative that could see a team called Rangers continuing to play at Ibrox. As was the case in England with Leeds United, the insolvent company can create a "phoenix" club and attempt to transfer every part of the club to a new business, leaving behind the debt.