Transfer embargo and fine undermine Rangers say administrators Rangers administrators Duff and Phelps warned attempts to rebuild the crisis club had been seriously undermined by a 12-month signing embargo handed out by the Scottish Football Association. The punishment, which prohibits them registering any player aged over 17, came with fines totalling £160,000 following a three-day hearing by an SFA judicial panel last week. Rangers vowed to appeal but the decision creates another obstacle to completing the sale of the club with the party apparently closest to a bid, American Bill Miller, having stated his offer was dependent on his new club receiving no penalties. Duff and Phelps reacted with "utter shock and dismay" to what they labelled "Draconian" sanctions arising from the SFA's independent inquiry into the club's finances and appointment of owner Craig Whyte as chairman. The inquiry last month ruled Whyte "not fit and proper" and the Rangers chairman was expelled from Scottish football for life and given £200,000 in fines. Joint-administrator Paul Clark argued the club were being unfairly punished for the actions of their owner, whose withholding of tax payments sparked their descent into administration in February, with the bill now more than £14million. Clark said: "The thrust of the charges against the club focused on non-payment of payroll taxes and evidence was produced that all such decisions in this area were taken by Craig Whyte during his tenure. Given this evidence, it is difficult to comprehend that the disciplinary panel has seen fit to effectively punish the club even more heavily than Mr Whyte. As everyone knows, it has already been decided he is not a fit and proper person to run a football club and any further punishment on him will have little or no impact. However, for Rangers, a ban on signing players will seriously undermine the club's efforts to rebuild after being rendered insolvent. Furthermore, we do not know how bidders for the club will react to these sanctions and what affect they will have on their proposals. "The club has asked for full written reasons for these decisions and intend to appeal against the findings."The outcome of the disciplinary charges came towards the end of a day initially earmarked as the time Duff and Phelps would announce a preferred bidder. They still did not have an acceptable bid though with both Miller and the Blue Knights seeking clarity on football sanctions. More clarity on those could come next Monday when Scottish Premier League clubs vote on new financial fair play proposals. These would leave the newco club favoured by Miller receiving financial and points deductions - if accepted into the SPL. Hours before the SFA announcement, Miller said he was delaying moves to enter into exclusivity with Duff and Phelps in order to allow the Blue Knights and potential partners Ticketus, currently the club's major creditor, more time to finalise their bid. However, his previous statement demanding "written assurances" that a new Rangers would not face penalties suggests the impasse will continue for some time. The club have three days to appeal following receipt of the SFA panel's reasons with the fines payable within 12 months. Rangers received their transfer embargo and a £100,000 fine for bringing the game intro disrepute, were fined £50,000 for being subject to an insolvency event, and £10,000 for failing to ensure Whyte abided by the fit and proper rules. They were also censured over gate receipts owed to Scottish Cup opponents Dundee United.