Glasgow Rangers went into financial administration on Tuesday, triggering a 10-point deduction that will leave rival Celtic 14 points ahead in the title race.
The Glasgow club, which has won the domestic title a national-record 54 times, made the decision because it faced an estimated bill of 49 million pounds ($77 million) in a protracted tribunal case with British tax authorities.
Rangers was bought by Craig Whyte last May. He pledged to pay off debts of 18 million pounds ($28.4 million) left over from the tenure of former majority shareholder David Murray.
However, Whyte has been unable to solve the club’s financial problems and tax authorities are demanding the settling of unpaid taxes “over a period of several years dating back to 2001.”
Rangers had been four points behind in the Scottish Premier League standings. The 10-point penalty will leave the club in second place with 51 points, still nine ahead of third-place Motherwell.
Rangers, which was formed in 1873, won the now-defunct European Cup Winners’ Cup in 1972 and lost to Zenit St. Petersburg in the final of the UEFA Cup — the forerunner to the Europa League — in 2008.
The team has also won 33 Scottish Cups and 27 Scottish League Cups.