League funds of £250,000 will be withheld from Rangers after the Scottish FA decided it could not rule on an appeal against a tax scheme fine.
Rangers were penalised after Lord Nimmo Smith found the club guilty of breaching league rules with the use of Employee Benefit Trusts.
The Ibrox club argue that the fine should apply to the company which formerly ran Rangers.
And they intend to fight on in a bid to receive the prize money.
In a statement to the Stock Exchange, Rangers said they will now "take the matter to arbitration".
A Scottish FA judicial panel would review "determinations made by a football body" but chose not to consider Rangers' case since the Scottish Professional Football League is seeking to enforce an agreement that the league body say was signed up to by the company now running the Championship side.
In February 2013, Nimmo Smith's commission studied the use of EBTs by Rangers Football Club plc, now in the process of being liquidated by accountancy and business advisory firm BDO, between 2000 and 2011.
It found that the company's management did not take professional advice on disclosing the payments.
The findings also stated that the current owners should not be held responsible for any breaches made by the previous company.
It also determined that Rangers should not be stripped of league titles because "Rangers FC did not gain any unfair competitive advantage" nor did the payments make players ineligible.