There seems to be a number of threads to this whole debate:
Who's to blame for the mess Livingston are in?
Well it's easy to put all the burden on Massone and whilst I do believe he has some culpability for events dragging on as far as they have he is not the only one to blame. If we are honest much of Livi's problems stem from both the Keane and Flynn regimes. It seems to me that Livi, much like my own Dundee, have been cursed by owners who are nothing more than chancers. West Lothian Council is not blameless either - it really ought to have brought matters to a head far sooner than they did - but ultimately they are not a major reason for the plight Livi find themselves in.
Should Livi be punished?
The simple answer is "yes" - going into administration not once but twice without punishment would send out the wrong kind of message in my opinion. It would give a green light to other clubs in similar financial troubles to do exactly the same as Livi.
What should the punishment be?
Whilst there is an argument for demotion precedent elsewhere (especially in the English Leagues) is for a points deduction. A 15 point penalty (which is what Leeds, who were in a very similar position to Livi, were given) would be an appropriate sanction in my opinion.
In any case what should happen is that the SFL must have far greater clarity in the sanction for clubs going into administration.