Obviously will fuck us royally but if you consider how we've been run (lowest wages to turnover of any big club, huge reliable income from commercial stuff) we're probably in as good a position as any club to withstand this type of disaster. It's one area Levy's conservatism is actually useful.
Plus there have been plenty of big clubs that went down in far worse financial situations like Villa and Newcastle who eventually bounced back and both have been, or will be, in the Champions League within a few seasons of promotion.
It might be a long tough road, but we've got enough players to loan/sell to cover a good chunk of the losses, plus the whole relegation clause element should help us. We'll obviously suffer but any talk of insolvency or the club being in existential danger is way OTT imo, and most financial experts I've heard talk about it say the same.
The critical thing is to just not make the same mistakes, take relegation seriously, and ensure we come straight back up at the first time of asking. We'd be far better off retaining a strong enough squad to ensure promotion and taking a short term financial hit, rather than selling the crown jewels and be left with a squad of purely kids and cloggers that leaves us stuck in the Championship.