Rangers have been deducted 10 points after entering administration and failing to pay the British taxman €80M.
And it leaves the reigning champions 14 points behind Celtic in the race for the Scottish Premier League title.
An SPL statement said: “As Rangers FC is subject to an insolvency event, a 10-point deduction has been applied to its total points in the league championship for the current season.
“In addition, Rangers FC is subject to restrictions on the registration of players whilst in administration.”
Rangers may now go bust.
Rangers, who are now nine points ahead of third-placed Motherwell having played a game more, also face a race to prove to the Scottish Football Association that their finances are in shape before 31 March or face expulsion from Europe next season.
Although there is no specific ban on clubs in administration playing in Europe, it would be very difficult for such a club to meet the other financial criteria needed for a licence.