Ally McCoist believes Rangers dropping into the Europa League could be a blessing in disguise.
Michael Beale's side crashed out of the Champions League at the play-off stages after a thumping second-leg defeat to PSV Eindhoven.
McCoist was hugely disappointed that his former side could not get over the line to join Celtic in the group stage, but he feels the Europa consolation could be a positive for the Govan outfit.
He said: "In the cold light of the day, the Europa League is the tournament that Rangers should be involved in, whether we like it or not.
"That is the level that I think Scottish teams are at. Good luck to Celtic in the Champions League but the fact of the matter is our clubs are not going to win that tournament.
"I have been in the manager's shoes before, you are desperate for the finances, you need the finances, but at the same time you don't want to see what happened to Rangers last year.
"It is mentally a battering for the players and the supporters. The supporters, who were in Eindhoven in their numbers and I thought were tremendous, have got everything to look forward to.
"They have a massive game against Celtic at the weekend and they have a Europa League campaign now to look forward to.
"As much as tonight was a disappointment with Rangers on the end of a heavy defeat, there has to be a reality check, there is still plenty to look forward to."
On the prospect of further new faces coming into Ibrox, McCoist added: "The business might now be impacted financially after dropping out of the Champions League.
"If they had got through the tie tonight the lucrative finances he may have been chipping the board's door down for money for new players.
"With that money not coming at the same extent now, it might have an effect on one or two he may have wanted to bring in before the end of the window."
