I suppose it depends how much 'notice' there is. Most players are on fairly short contracts - 2 or 3 years in general. So if the notice period was three years, then you'd always have the chance to negotiate a contract with lower wages before the income stream went dry. The current inflation in player wages is mostly down to the "if you wont' pay me X, someone else will" argument predicated by the Bosman ruling. If it was obvious to all that nobody else is going to pay X because the money simply isn't there any more, then player wages will naturally fall to a lower level. This combined with the UEFA ruling that no club will be allowed to play in Europe if it's being run at a loss is all going to see pressure to bring player wages down. Which is only a good thing IMO. I doubt we'll ever get star player wages down to 'sensible' levels but I think the effect overall could actually be positive for the clubs.

If there are less clubs then there will be less demand for players so they will have to take lower wages

The US sports have a good system that holds players pay to a level that it does not damage the club. There is an overall salary cap, set at around 67- 69% of total revenues. That would be a good thing to implement, plus an option to cut players salaries if relegated. It might make them play harder if they are near the bottom of the league.