A Scottish Football Association tribunal gave consideration to terminating Rangers’ membership during a case against the club on five breaches of the governing body’s rules.
The club were handed a 12-month registration embargo in late April by an independent inquiry, as well as receiving fines of £160,000, having been found guilty of breaking four regulations.
In its deliberations, the judicial panel concluded Rangers' actions meant that "only match fixing in its various forms might be a more serious breach” of the Scottish FA’s rules.
In a 100-page document published on Friday, which gave the full reasoning for the panel’s decisions, it is stated: “Having regard to its view on the undoubted gravity of the breaches, the Tribunal considered whether it should terminate Rangers FC membership of the Scottish FA and concluded that punishment was too severe.
“It considered whether suspension of membership was a less serious but an appropriately severe punishment, but concluded that too was too severe.”
Explaining the severity of the punishment handed down to the club, which was heavily influenced by their failure to pay taxes, it is said the tribunal felt that “the registration prohibition struck a balance which was relevant to the mischief and proportionate to the breach.”
The document continues: “It appeared to the Tribunal that in a case such as this the punishment should relate in some meaningful way to the unpaid taxes arising from high wages and salaries amongst certain players.
“It appeared to the Tribunal that a temporary prohibition on registering any new players during a period of twelve months was a suitable, relevant and proportionate sanction.
“The Tribunal recognised that it would place pressures on Rangers FC and accordingly limited the period and specifically excluded from the prohibition the registration of persons under eighteen.
"The Tribunal was of the view that whilst the sanction was severe it was not excessive and that the period covered only two signing windows.
"It was, of course, unknown what capacity Rangers FC may have during that twelve month period for signing and registering new players in any event."
The report was severely critical of owner Craig Whyte and described him as the "directing mind and will" of Rangers between May 2011 and February 2012.
However, it explained the decision to punish the club was based on legal precedent, which allows a company to be held liable for the behaviour of a director.
"The Tribunal took into account the extraordinary circumstances of the offences and the extent to which Rangers FC through its directors had been apparently misled and deceived by Mr Craig Whyte," it is said.
"Against that it took the view that whatever their position a number of individual directors and employees must have known that what was happening within Rangers FC was entirely wrong and illegitimate but they chose to do nothing to bring it to the attention of the public.
"That may be matter for their long term reflection but it does reduce the mitigatory impact of the suggestion that Rangers FC were innocent victims."
Rangers' appeal against the decisions will be held by a three-man tribunal on May 16. The panel will consist of Lord Carloway (chair), Craig Graham and Allan Cowan.
The tribunal has the power to either increase, decrease or amend the original punishment, as well as uphold Rangers' appeal either in part or in full.
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