Charles Green has revealed he may be forced to accept the transfer ban handed to Rangers in order to secure the Ibrox club's SFA membership.
The Scottish Premier League and the SFA on Monday night vowed to back the Scottish Football League's decision to put the Ibrox club in the Irn-Bru Third Division.
Rangers are due to be re-launched in the Ramsden's Cup first round against Brechin at Glebe Park on July 28 but Green will need to come to an agreement with the SFA beforehand and talks will continue on Tuesday.
Rangers successfully overturned the 12-month transfer embargo in the Court of Session before Green's Sevco Scotland bought their assets when they were consigned to liquidation.
But the alternative punishment, sparked by their failure to pay millions of pounds of tax last season, could be suspension or termination of membership if the case reverts to an appeals panel.
SFA chief executive Stewart Regan wanted to put the new Rangers in the First Division with the transfer ban, a £160,000 fine and a stipulation to pay the original Rangers' transfer debts of around £3million.
Regan has predicted "social unrest" if there is no football played at Ibrox next season but Green hinted he might have to accept the sanctions to make that possible.
Ibrox manager Ally McCoist has lost a full team of players who refused to transfer to the new company and Green tonight revealed that Dorin Goian, Carlos Bocanegra and Maurice Edu would follow them.
Green, who represented Rangers at Monday's SPL annual general meeting along with McCoist, told Sky Sports News: "I gave a verbal agreement to transfer the oldco share across to Dundee and we've now got verbal agreements with both the football league to admit us into Division Three and on issues outstanding with the SPL.
"The real key now for Rangers fans are the issues outstanding with the SFA - most of the agenda items that have been talked about for weeks and weeks: the transfer embargo, fines that were put out there, and payments to football clubs that had happened for previous transfers.
"It is now for newco to take on board the sins of oldco to clear a way forward. Many fans have spoken to me and said how unfair it is.
"At one meeting today it was explained that being demoted to the Third Division is not a punishment. I'm not very bright but I struggle with that one, to see that leaving the SPL and ending up in the Third Division is anything but a punishment.
"The difficulty we have is we've been working for many, many weeks now on these issues and there is a point where unless I as CEO accept sanctions then we won't be granted permission to join the SFA.
"But it's a balance between what's fair and what's required. The problems this club created - and no-one is walking away from that - by previous owners have now been laid bare, sanctions been taken, the manager and all board members and employees have had to deal with that.
"I addressed the staff today because there will be job losses and the implications are huge. We need to draw this matter to an end now. We need the SFA to agree membership for us now so we can all rebuild and get on with our lives."
The SFA said in a statement: "The new season begins in less than two weeks and it is incumbent on the Scottish FA to conclude all outstanding issues relating to Rangers FC.
"To that end, we aim to meet with the club this week with the intention of achieving a satisfactory outcome for all parties so that we can focus on football in time for the new campaign."
The new Rangers are also due to play in the League Cup on August 4, with the draw taking place this week, before playing their first league game at Peterhead on August 11.
"We are now accepted as a member of the football league but we are unable to even play a friendly and the first cup game is in less than two weeks," Green said.
"We haven't got many players because some who have been tremendously loyal, Goian for example, they came back hoping that some sense might have prevailed.
"He was happy to commit to Rangers even if we were not in the top flight but clearly we can't expect an international player to be playing in Division Three, unfortunately.
"We're going to lose some more now for different reasons than the others. But we can understand and we thank these players for their loyalty.
"It does increase the pressure on Ally even further, we're asking him to manage a club where the SFA still want to put some transfer embargo on us and we haven't got any players at all."
what do you think?
the trouble is the the SPL & SFA havent had the guts to kick rangers out the league they wanted the other teams to do it for them to which they have done with certain promises being given, well the GRIM REAPER is on his way, how many of them teams are going to struggling to pay their players wages now that their gate money is going to be a lot less and i mean a lot less, they made their bed now they have got to lie in it, i for one will not lose one iota of sleep over them and im an englishman,best of luck to RANGERS & their SUPPORTERS
Thanks 4 that.U couldn't make this storyline up if u tried,but then again that sums up the shambles that is our ruling body.I know the english fa get a rough time of it down south but the sfa make them look like the best thing since sliced bread.Portsmouth are having a hard time also but surely a points deduction for them is the least of their worries compared 2 this transfer embargo whereby we can't put a team on the park thereby practically putting us out the game in scottish football.WATP STB
Yea my only concern is us puttin a team on the pitch! how the hell we meant 2 do that with transfer embargo? The sfa is a joke!!! RTID WRTP STB
Rangers have been liquidated and therefore no longer exist! Why then are the new company being subjected to punishments and sanctions that have nothing to do with them? This is purely a witchhunt and bullying tactics by the SFA and SPL and realistically both of them have been seen to be not fit for purpose!