With serious sanctions hanging over Manchester City, observers are looking ahead to potential consequences that bear some comparison to the financial collapse and administrative crisis experienced by Scottish club Rangers in 2012. Entering administration in February of the 2011-12 season triggered a 10-point deduction for Rangers, who ultimately finished that campaign in second place, 20 points behind champions Celtic. No further sporting penalties were applied before liquidation ensued in June 2012, and Rangers were never stripped of honors won during the years they utilized employee benefit trusts, which were ruled not to have provided any unfair competitive advantage.
A central and often confusing debate among supporters involves the distinction between Rangers the club and Rangers the company. Following liquidation, the football assets including Ibrox Stadium, the training ground, and the club name and brand were acquired by a new company led by Charles Green. Despite the team continuing to play at Ibrox in the same colors and badge, rival supporters frequently argue that the entity is fundamentally a new club. Following the asset purchase, a vote was held to decide whether Rangers could remain in the top flight, with ten of the twelve top-flight clubs voting against the application.
Consequently, Rangers had to apply to play in the lower leagues governed by the Scottish Football League, a body separate from the top-tier Scottish Premier League. This structural separation shares similarities with English football, where the Premier League operates independently from the English Football League, which oversees the Championship, League One, and League Two. Expulsion from the Premier League has been hypothetically discussed as a potential sanction for City, which could force them to apply for acceptance into the EFL much like Rangers did.
While the Scottish FA recommended that Rangers enter the second tier, the majority of lower-league clubs rejected the proposal, voting instead for the club to enter the fourth tier. Concerns were raised at the time over broadcast deals and the loss of Old Firm derbies, though league executives acknowledged that financial income would inevitably decrease. Former manager Ally McCoist navigated the team through the lower tiers, later describing the ordeal as heartbreaking primarily due to the non-playing staff job losses that occurred. On the pitch, McCoist recalled an unusual journey through the lower divisions defined by remarkable fan loyalty before he departed midway through their first Championship season.
Mark Warburton eventually guided Rangers back to the Premiership in 2015, though only one league title has followed in the decade since. Translating this scenario to Manchester City presents a major challenge given the vast financial disparities between English and Scottish football. Even in the fourth tier, Rangers maintained a budget that allowed them to attract top talent, a luxury difficult to imagine for City if they suffered a severe demotion and their squad was dismantled.
Unlike Rangers, who lost integral players without recouping transfer fees because squad members objected to transferring to the new company, City would likely generate substantial revenue from departing stars, subject to contract clauses. Nevertheless, former players and figures note that dropping down the divisions effectively means starting from scratch because top-tier players will not stick around, leaving a club like Manchester City to rebuild completely from the bottom up.