Rangers have been deducted 10 points after entering administration.
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."
The statement added that the SPL would be "seeking an early meeting with the administrators".
One item high on the agenda will be Rangers' ability to fulfil and host their next league game, at home to Kilmarnock on Saturday, although Strathclyde Police has expressed itself happy that it will be paid for policing the event.
"We have had a positive meeting with the administrators and received assurances about payment for the provision of police services at this weekend's match," said a police statement.
"We are working with the club and planning for the game as normal.
"Strathclyde Police is a public body and has a duty to make sure public resources are used appropriately."
“As a first step, the administration team will ensure that Saturday's match at Ibrox will proceed as planned and all other routine club business will continue”
Paul ClarkDuff and Phelps
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.
Rangers owner Craig Whyte said: "It remains our firm belief that the club's future can be secured and we hope this period of administration will be as short as possible.
"As chairman and a Rangers fan, it is very painful to see the club being deducted 10 league points, but I would urge all Rangers supporters to rally round Ally McCoist and the team in these difficult times."
Whyte placed the club in the hands of the administrators following a long-running tax dispute with HMRC that he claimed could cost the Glasgow club £75m.
However, it has emerged that Rangers were forced into administration over an unpaid tax bill of £9m - accrued since Whyte's takeover.
Duff and Phelps is now likely to cut costs at Ibrox and that could include job losses among the playing staff, although that process has been ongoing in recent years.
Rangers sold top goalscorer Nikica Jelavic to Everton for £5.5m last month, the Croatia striker being one of nine departures from manager Ally McCoist's playing squad for the rest of the season.
Rangers fans give their reaction to the news the club is in administration
The Ibrox club added only Sweden Under-21 winger Mervan Celik during the transfer window and there is a question mark over whether a deal to sign free agent striker Daniel Cousin has been completed in time.
Rangers' move into administration has disappointed Scottish Football Association chief executive Stewart Regan said: "I shall also be seeking a discussion with the appointed administrator in early course, to establish their intentions for the club given the wider implications for the Scottish game.
"This is a profoundly sad chapter in the history of Scottish football and we should not underestimate the potential ramifications for the image of the game as a whole.
"This season alone, we have had two of our biggest clubs, Rangers and Heart of Midlothian, experience serious financial uncertainty, with many other member clubs surviving hand-to-mouth in the current economic climate.
"At a time when there is an appetite and momentum for radical change in Scottish football, it is important that we learn lessons from this dire situation and work together to provide a platform for clubs to thrive and prosper within their means."
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