Rangers Football Club has appointed an administrator after a court petition was lodged by HM Revenue and Customs (HMRC) to have one appointed.
Rangers had been given until 3.30pm to appoint an administrator following legal debate at the Court of Session in Edinburgh .
The court was told the administrators would be Duff & Phelps.
Yesterday, the Glasgow club lodged papers at the court signalling its intention to enter administration and said a final decision would be taken in 10 days.
The Clydesdale Bank Premier League champions are awaiting the verdict of a tax tribunal which could cost it £75 million.
Speaking at the Court of Session, HMRC's legal representative, David Thomson, said the authority was keen to avoid the public perception, and the perception among Rangers' creditors, that the administrator was too close to the club.
However, Rangers' counsel, Roderick Dunlop QC, said Thomson had put forward an "amorphous criticism" of Duff and Phelps, which he called "a respected firm".
Following legal debate, HMRC accepted Duff and Phelps as administrators and their appointment was confirmed shortly before 3pm today.
The Ibrox side, one of the biggest and most influential clubs in Scotland, has now fallen 14 points behind leaders Celtic as a result of the decision.
Holyrood sport minister Shona Robison said: "This is obviously a concerning situation for everyone involved in Scottish football.
"Football is our national game and it is now for the administrators to take forward the process of assessing the business and securing an outcome in the best interests of the club, its staff, supporters and the game of football as a whole in Scotland."
Speaking after the proceedings at the Court of Session, Dunlop said: "It was agreed that HMRC would withdraw their petition and Duff and Phelps would be appointed as administrators."
He also confirmed that Rangers FC has accepted the liability for HMRC's expenses incurred in drawing up today's petition.
During the proceedings, Thomson made it clear that he had not made any "direct criticism" of Duff and Phelps.
He said: "The concern is over perception, rather than anything improper."
The appointment follows an afternoon of legal wrangling over who had the right to call in the administrator.
Rangers submitted its notice of intention yesterday but it emerged in court today that just moments later HMRC also filed a petition for a court-appointed administrator over Rangers' unpaid tax bill.
However, Thomson said there was no "unseemly rush over who could get the petition in first".
He said: "Discussions with HMRC came to an end with an indication that HMRC saw itself as entitled to proceed as it saw fit.
"It went up to the court but only moments before the intention to appoint was filed by the directors.
"It is not the case that the petitioner (HMRC) was engaged in some battle to lodge the papers first, as we didn't know for certain that the directors intended to do that."
Rangers had ten days by law to appoint the administrator but its hand was forced by HMRC's action.
Judge Lord Menzies gave Rangers until 3.30pm today to make the appointment. If Rangers failed to comply, Lord Menzies said he would then rule on HMRC's petition for a court-appointed administrator.
During the adjournment, the parties agreed on Duff and Phelps and HMRC withdrew its petition.