THEY staggered into Glasgow in the early hours of this morning, their season in tatters before a domestic ball is kicked, reputations torn to shreds, and both manager and players thrust head first into the eye of an almighty storm.

THEY staggered into Glasgow in the early hours of this morning, their season in tatters before a domestic ball is kicked, reputations torn to shreds, and both manager and players thrust head first into the eye of an almighty storm.

One of the blackest nights in Rangers history. Walter Smith - who had previously suffered Champions League qualification pain against Levski Sofia, AEK Athens and Gothenburg in his first spell at Ibrox - pushed into the firing line and under intense pressure and scrutiny.

As disasters go, this one takes some beating. In fact, the shock loss to Czech unknowns Vitoria Zizkov six years ago in the Uefa Cup under Alex McLeish simply pales into insignificance in the fall-out from last night's Lithuanian shambles when one of the poorest Rangers sides in history capitulated in utter shame and embarassment.

But the real effects will only truly be felt in one important place once the sifting through of the immediate wreckage caused by Smith's side ends - their bank account.

At a time when every pound is a prisoner, the Ibrox club have just suffered a mass jail break-out courtesy of their exit from European football.

For their stunned support - still reeling and left in a state of utter disbelief at what happened in the dying minutes against a run-of-the-mill Kaunas side - the first gnawing feeling is one of missing out. They will not only be on the outside looking in when the Champions League big-time starts with fierce rivals Celtic in it, but don't even have the fall-back of a shot at Europe's secondary competition, the Uefa Cup.

For a team who played in 19 European matches last term and reached a Uefa Cup Final, and who made the last 16 of the Champions League and last 16 of the Uefa Cup in the two seasons before last, that starvation of a continental menu - there will be no Euro return for a calendar year - is absolutely unpalatable.

But, as they close ranks and attempt to pull Rangers off the floor just days before the start of a league campaign that has to be successful to stop Celtic winning four SPL titles in a row, the effect of a monumental financial black hole is the shuddering punch that has just been delivered to Sir David Murray and the rest of the Rangers hierarchy.

Factored into the annual running of the club is Champions League qualification and all its riches, with Murray going on record as saying Rangers need the £10million revenue each season to secure a break-even figure.

It will be in the 08/09 accounts that the full impact will come and, as well as having a possible immediate effect on what Smith can do between now and the transfer window closing on August 31 - the real meltdown comes then.

Instantly, a fear will manifest that one of their two prize assets - Carlos Cuellar and Allan McGregor - will be sold to offset the damage last night has caused.

That scenario, should it occur, would lead to massive ramifications and recriminations within the rank and file, but also remove what little class this bunch of ragged, workmanlike players has right now.

Essentially, what happened last night has just strengthened the grip of Celtic around Rangers neck; the Parkhead club have out-muscled them for a while now in terms of transfer fees and wages, but are now in a position to deliver blows that could put their Old Firm rivals back years.

Investment in their playing staff in the next few weeks - funded further by the fact they will bank an extra £2m in Champions League TV money now as Scotland's sole representatives in the group stage - would firmly establish Celtic as favourites to win the SPL title again, and have another straightforward passage back into the groups.

They feed off the same money tree as their rivals in terms of Europe, and will know exactly what kind of carnage a result like last night can cause after suffering the same fate three years ago against Artmedia Bratislava.

Celtic's reaction will be very interesting. Presented to them has been an opportunity to leave Rangers behind, and a few class additions to what is already, man for man, a better group, could take them into the distance - with the Ibrox side bereft of funds to try and catch up.

And what now for Smith? He returned to the helm just over 18 months ago when Rangers were in crisis just months into the failed Paul Le Guen dream. He steadied the ship, got them into the Champions League last season, and then embarked on a 68-game marathon that at one stage threatened to deliver a quadruple.

But the wheels fell off, and two domestic cups - and this early, nervy high-wire start - was the result of blowing the league title at the dramatic finale.

Having watched Rangers periodically over the past month of pre-season, they were a disaster waiting to happen and most observers alluded to this. Robbed of influential skipper Barry Ferguson, without the injured Cuellar, and missing attack minded players like DaMarcus Beasley, Chris Burke and Stevie Naismith, they have been rudderless and, quite frankly, rank rotten.

The magnitude of what they faced against Kaunas was supposed to create a reaction, but clearly these players are quite simply not good enough? But, does Smith have enough left in the kitty to go out and get people who are?

Again, his tactics are under severe scrutiny. Kaunas offered very little at Ibrox last week in the goal-less first leg draw.

But Smith went with his favoured 4-5-1 last night against a side who, in the first half, looked there to be got at.

There was no adventure from Rangers; the gamble of going with what they had across midfield blew up with the most devastating effects. As manager, Smith has to carry the can for those decisions - and for the signings he has made.

In the second period they just fell apart. They tried to cling on, but there was almost an air of inevitability about the Lithuanians getting a winner after they struck just before the break to make it 1-1.

By the time they did, it was too late. Rangers had four minutes of regulation time to react, and three additional injury minutes, but they were gone. Over and out.

They were simply never good enough to see off a team from Lithuania over two legs and that is the biggest indictment of all. This Rangers team is, quite frankly, dreadful.

Just where it leaves this squad, what Smith feels is the best course, will develop in the fullness of time. He hinted today the transfer market will be plundered as a matter of urgency, and exactly what funds he has at his disposal - after shelling almost £9m already this summer on Kyle Lafferty, Kenny Miller, Andrius Velicka and Madjid Bougherra - remains to be seen.

And, given that getting players has been problematic, how much more difficult will it become with no European football to dangle in front of targets?

But, for a man so used to unparalleled success at Ibrox, Smith now finds himself at the helm of a club well and truly in crisis.