But, in a welcome boost for the Fir Parkers, at least they have announced the promotion of another nine proposed graduates to full-time.
"Although it’s disappointing to lose Bailey at this stage of his development, we respect his decision,” Hammell told the Motherwell website.
“On the flip side though, we are absolutely delighted that so many of the group we had earmarked for graduation into our professional set-up have placed their trust in us and the pathway we think we can provide to first-team football.
“We have already seen so many of them train and integrate with the first-team squad in the first week of pre-season and that’s something that should not only give them all encouragement, but additional hunger and desire to kick on.”
Rice’s switch to Ibrox will see him join up with the club’s under-18 side, managed by Cameron Campbell and Steven Smith.
Meanwhile, this weekend Motherwell are travelling to Austria for a pre-season tour running until Sunday, July 10.
They will take on Austrian Second League club SK Vorwarts Steyr at the BSFZ Obertraun complex on Friday, July 8 with kick-off at 4.30pm.