FFP/PSR wasn't a thing when City were formed in 2008. Their prior owners were bent Thai billionaires too IIRC.
They turned up on transfer deadline day incredibly. They immediately tried to hijack United's deal for Berbatov, failed and then spent £30m on Robinho. In 2008. Also spent £18m on Jo that window but he was already there I think.
In 09/10 they went even more mental and got Barry, Santa Cruz, Tevez, Kolo Toure, Adebeyor and Lescott for around £120m in total. In 2009.
City spent heavily in the first few years to improve as rapidly as possible. I don't know if they knew FFP/PSR was coming but they were un-hindered until FFP came about in the 11/12 season. PSR was 13/14
They won their first PL title in 11/12 so were already a force by the time it had kicked in.
Newcastle could need 10+ years to actually benefit from being the richest club in the world. They will need to, IMO, build a new stadium with vastly inflated ticket prices and premium facilities, get a record breaking naming deal, shirt sponsors, qualify for the CL in most seasons, win a few more cups and only then will they be able to start spending extravagantly.
Or, more likely, they'll just say fuck it and do it anyway. City will get off with a fine and, when they do, the rich clubs will go mental and buy everyone.