That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider it’s going to be a “problem” for Scottish clubs moving forward.

Celtic were the last active Scottish Premiership side competing in Europe this season, but they were beaten 4-2 on aggregate by Stuttgart in the Europa League knock-out round play-offs.

That defeat meant Scotland has now lost its second Champions League place after next season, having slipped out of the top 15 in Uefa’s coefficient ranking.

It could have a dramatic impact on the finances of Celtic and Rangers, while Hearts could miss out on a place in the competition if they continue their form into next season.

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How Champions League blow will impact Scottish clubs

Scotland’s allocation for Europe has now been reduced from five teams to four, while they will each enter qualifying in earlier rounds.

The winners of the Scottish Premiership next season will enter the Champions League in the second qualifying round, while the runners-up will join the Conference League at the same stage.

Speaking exclusively to Football Insider, Borson discussed the impact of Scotland losing its second Champions League place.

“I think the whole thing is a total disaster for Scotland,” said Borson.

“You’re going from a situation, not just two places, but it’s also the difficulty of qualifying even for the first place. I think it’s a complete game-changer for Scotland.

“I don’t see how, from that position, you get yourself back up the table to get more places because what’s going to have happened is that they’re going to be in a position where they’re in the lower competition.”

Hearts currently lead Celtic by five points at the top of the Scottish Premiership table, while Rangers are a point further back in third place.

Why Scottish clubs are facing transfer blow

Borson revealed there will be a significant financial impact on Scottish clubs after losing the second Champions League place.

“They’re going to have had lower revenues, therefore they’ll have invested in less high-quality players, so it becomes self-fulfilling and it compounds year-on-year because they don’t have the players to compete,” said Borson.

“They don’t do that well in the competitions, so then they lose more Uefa points and it just keeps going down and down.

“I think it’s very bad. It’s going to be a real problem for Scottish football going forward.”

Celtic earned around £40million in prize money from the Champions League last season, having reached the knock-out round play-offs before suffering defeat against Bayern Munich.

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