Rangers say they will continue to seek compensation for the players who declined to transfer their contracts to the newco club after failing in their initial challenge.

Rangers were seeking compensation for six players who left Ibrox, citing employment law, after the oldco club were consigned to liquidation in June.

It is understood an arbitration process was facilitated by the Scottish Football Association and involved a representative from both parties along with a QC, who ruled against the club.

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A hearing was held earlier this month and Rangers tonight reacted to the ruling, which has not been made public.

A statement read: "Rangers Football Club today received notification of the SFA arbitration panel's decision which ruled that the club did not inherit the right to continue the arbitration process started by oldco.

"This was always a possible outcome of what was purely a procedural hearing.

"Suspecting this would be the outcome, the club had already filed a further Notice to Refer under SFA article 99.

"This was done before the end of last year and that process will now continue.

"The club had argued that since oldco's registration had been transferred to newco the right to continue the case would also have transferred.

"Nothing has been won or lost at this stage and the club will continue with its action."

Oldco Rangers were consigned to liquidation on June 14 and Charles Green's Sevco company bought the club's business and assets before assuming their SFA membership, initially provisionally, on July 27.

Rangers were seeking money for Allan McGregor (Besiktas), Steven Naismith (Everton), Sone Aluko (Hull), Kyle Lafferty (Sion), Steven Whittaker (Norwich) and Jamie Ness (Stoke), alleging breach of contract.

The players' representatives had challenged the club's right to participate in the process given Green's company did not have SFA membership when they left.

Steven Davis, John Fleck and Rhys McCabe also declined to transfer their contracts to Green's company but their clubs subsequently agreed deals with the new Ibrox regime.

The players left under TUPE laws, which entitle employees to retain their job, or decline to transfer their contract, when the company they work for is sold.

Green argued he had bought their contracts when he acquired the original company's assets and business for £5.5million.