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If Rangers weren't relegated, it would be the same. Soon enough, Rangers will be back at the top table and it'll be a La Liga mark 2.
Re SOC, there's no "error", Scottish teams did poorly in Europe so their coefficient dropped. As well as the fact the top 4 leagues wanted a monopoly on spaces in the CL.
You could be right, and I hope you are. The detailed look at ranger's finances aren't that pretty though. They've been stretching to get back in contention with Celtic, but are still miles off.
Rangers are making a loss each year and Celtic, despite spending almost 3 times as much as rangers on wages, make a profit.
This is due to the European money and commercial revenue that Celtic get absolutely dwarfs all of the other revenue streams in the league.
If rangers owners have deep enough pockets to close the gap with Celtic and then are able to grow the commercial revenue to match then it might become competitive again.