But he hopes Celtic's success in the Champions League - they will play Juventus in the last 16 - can offset any difficulties in attracting top talent to Parkhead. The Dutchman said:
"Rangers being in the Third Division has had an impact on Scottish football but also on attracting players to come over here.
"It's great for Celtic that they are in the Champions League and they have been able to focus on that.
"It's hard to attract players but doing really well in the Champions League will put Scotland back on the map and anything is possible.
"Hopefully they can keep doing what they are doing and it will be possible for them to get the better players to join the Scottish league."
Rangers chief executive Charles Green last week claimed he wanted his club to quit Scotland if new league reconstruction plans are implemented next season. His comments reignited the debate over the Old Firm plying their trade elsewhere - a move Petta would not be in favour of. He said:
"I don't think it will happen. If it did happen, it wouldn't be good for Scottish football.
"Unfortunately for Rangers, they are in the bottom league and have to work hard to get back on top. I'm sure that will happen.
"But Scotland without those two (Old Firm) wouldn't be good. "If you talk about Scottish football, you always think about Celtic and Rangers."
Former Rangers defender Arthur Numan can understand Green's point of view. However, the Dutchman is well aware of just how long the debate has been going on over the Old Firm quitting Scotland, without any hint of it happening so far. He said:
"I heard it as well when I came to Scotland in 1998. Rangers and Celtic were already talking about moving down south.
"Maybe this is the chance for the club to go to England and start in the lower divisions and try to work their way up to the Premier League but it's been going on for years and years.
"I can understand it because they are now playing in the Third Division against all of the smaller teams.
"With respect, it's not something that you have in mind when you are the chairman of Rangers."