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- Rangers spent some £14 million in the summer of 1997, mostly on Italian players, to boost their squad for the 1997–98 season, but defender Lorenzo Amoruso barely played due to injury leading Smith to recall the veteran Richard Gough (who had been allowed to leave for Major League Soccer), and forward Marco Negri was injured mid-season after a prolific initial spell of 27 goals in the first 18 matches.
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- They also won the Scottish Cup and reached the European Cup semi-finals for what would be the last time, going out to Atlético Madrid following an extremely violent first leg in Glasgow.
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Clubs were now required to invest in the safety of their stadia following the 1989 Hillsborough disaster in England, but Rangers required only minimal work to comply with the new regulations (though they had a considerable outlay adding another tier to their main stand to increase capacity), strengthening their financial position in comparison to the other clubs, with Celtic now struggling after years of poor financial management and playing in an outdated stadium. Not only was this ‘steal’ of a coveted player a psychological coup for Rangers over their rivals, it also marked a change in their ‘no Catholics’ policy which Souness had publicly criticised as being an impediment to Rangers achieving success due to its non-sporting limitations as to who could play for the club. They also won the Scottish Cup and reached the European Cup semi-finals for what would be the last time, going out to Atlético Madrid following an extremely violent first leg in Glasgow. This led the club to overhaul the ground into an all-seater stadium over the next decade, overseen by manager Willie Waddell (a 1950s Rangers hero as a player and the boss who led Kilmarnock to the 1965 title), though the financial impact of this undertaking was not obviously felt in the short term. Older hands like John Divers, and Jim Kennedy were allowed to move on, while Ian Young remained in the squad but played no active role in the following campaign.