I can only infer that Green may have stated that the deal would be off if the transfer ban was not lifted. Otherwise there is no justification for the actions by the administrators.
I would guess that many of the Rangers players will be able to 'walk' when the window opens later this week. If the team are to remain competitive, then they will have to be persuaded to stay by offering more cash.
A Rangers team filled with youth players and journeymen pros is not likely to prosper even in the very weak SPL. The crowds will fall off and rebuilding will be set back for years as the glory hunters departed leaving only the knuckle-draggers and a genuine supporters.