The reaction to the Clydesdale Bank Premier League's financial fair play proposals was a bout of hysteria.

"These punishments aren't severe enough." "These punishments are too severe." The contradictions naturally fell along club loyalties: fans of other teams feel that Rangers are effectively being ushered back into the Scottish Premier League even if their route out of administration is via a newco, while supporters of the Ibrox side railed against the points and revenue deductions, as well as the timing of the announcement. The SPL were, in truth, damned if they did and damned if they didn't.

What is a suitable punishment for a club that does not pay its tax bills or other creditors because it has run out of money? A points deduction seems right for teams that enter administration, and the SPL's proposals include raising this penalty quite severely. This is to be welcomed as a deterrent. But what if a club has to liquidate, transferring its assets to a newco? Demotion is the ultimate sanction that any league can apply.

Financial irregularities are worthy of strong action, and many Rangers fans are aghast at the state their club has been reduced to. Many are furious at the notion of their club being unable to pay its dues, and some might even welcome a period of penance in the lower leagues, but Scottish football cannot accommodate such an outcome. The change to the sanctions against clubs in administration should not affect Rangers because they have already suffered that fate, and the punishments for newco clubs are new because the prospect had never been faced before. There are two scandals here: the first is the recklessness, financial mismanagement and dereliction of duty shown by Sir David Murray and Craig Whyte in reducing Rangers to this predicament. The other is that the SPL is so reliant on the money generated by the Old Firm that the Ibrox side is, essentially, too big to fail.

If there is outrage at the SPL's proposals – which involve 10-point penalties for two seasons and 75% of revenues being withheld for three years for newco clubs – there certainly shouldn't be surprise. The decision to punish but not prohibit the newco option is a commercial decision, at least when it comes to Rangers (or, for that matter, Celtic had a similar fate befallen them). Without the Ibrox side, the broadcast and sponsorship deals are reduced, and member clubs also suffer diminished income from gate receipts.

The SPL was established to make money for its members; clubs left the Scottish Football League on the coat-tails of the Old Firm to earn more income. It is a flawed concept, and these proposals are a consequence of that. A league that is run by its members is shaped by self-interest, and open to accusations of being compromised. Other clubs were so eager to defect from the SFL they granted the Old Firm voting rights and broadcast income splits that effectively increased the gap between them and the others. Where's the sporting integrity there?

And where is the strong leadership required at this time? Where is the strong governance? There is none, because the clubs run the league, and they are looking out only for themselves. The Old Firm are happy for this to continue, which is why Celtic reacted so vehemently to the notion of the other 10 clubs seeking a change to the voting rights and broadcast revenue split.

The situation is a mess. The SPL cannot demote, because it does not run the league beneath it. Fans of other clubs are outraged, and fans of Rangers are outraged, each because they perceive bias in the decisions made by the SPL. If Rangers supporters want to lash out, they should aim for Murray and Whyte, the men responsible. Sanctions are required to deter other clubs from spending outwith their means and casting off their debts through the commercial and legal avenues of administration and liquidation.

It is not the SPL's fault that Rangers are suffering this plight. There is frustration at Ibrox that these proposals were released now, when the bidding process among potential new buyers is at such a delicate stage, but the sanctions were also expected. All of the bidders were aware of what might be coming. Yet the proposals could have been publicised after the preferred bidder was announced, or even after a CVA had been offered. The timing looks like nothing more than opportunism and aiming another blow at the stricken club.

Can Rangers complain? Nobody at Ibrox expects sympathy, and there is an acceptance that the punishments are required to try to prevent other clubs allowing their finances to become so unmanageable. Yet the timing, the proposals, the whole scenario is an indictment of the way the top-flight of Scottish football is run. A league owned and managed by its member clubs has undermined the game in this country.

The same can be said of the comparative financial might of the Old Firm. Rangers and Celtic bring so much money into Scottish football that they effectively run the game. Rangers are guilty of living beyond their means. They should be punished for that, because not paying taxes is an affront to everybody else in society who does. Most fans accept that. But the SPL model is flawed. The game needs stronger, independent governance, for the sake of all its clubs.