What I don't fully understand about the financial fair play rules is what would happen if they did indeed get relegated because of legal trouble and then the Manchester City sheikhs would be willing to continue paying all the players those high salaries, would that be allowed or would they break any financial fair play rules if they had to go down in the Championship? I wonder what the baseline is there to determine how much it is allowed to be paid in salaries to all the players.
They will not be able to pay those players from their own pocket, players salaries are paid from revenue generated and they are not going to generate anything near half of what they're currently generating. It's against FFP.
I think Man City is still able to pay salaries to its players even though they are relegated they still have enough finances to pay those salaries, City will also not last long in the Championship I think in just one season they will return to the EPL and become a strong club there again after that they can generate income as usual.
You missed the point, the problem are the financial fair play rules although I just realized that I don't know whether they equally apply to every league below the Premier League. I am sure there are limits in place and I doubt that Manchester City could play there with the exact same team they have now. Haaland probably earns more than some of the entire teams in the Champoionship.

But as I mentioned before, I think Manchester City is a club too big to fail legally in front of any of the responsible courts. There are a lot of ways to influence decisions with money and this would perhaps be one of those examples.