In answer to your original question my opinion is YES it would be a disaster.
Take a look at the cases of two northern clubs who were in the Premier League but have since slowly sunk , more or less out of sight.
BRADFORD CITY: A well supported club, they had a guy in charge who spent money like it had no value, paid top whack wages for some Prima Donna players and yes after their disastrous fire and rebuild of the ground to what it is today, attained the promised land of Premiership Football for two seasons against all the odds. However, he was found out to be a similar character to a family we no well and sold the club to a company, from memory, based in Germany, who it was suggested were only their to line their pockets. Bradford have slid through the the leagues and are presently languishing in League two , where they have been for a number of seasons. I speak regularly to a number of their fans and they are basically at their wits end with the continued disappointing results and inability to climb out of the basement league.
OLDHAM ATHLETIC: A well documented, on this board, disaster of a club. One of the original formants of the Premier League, their story is not dissimilar to the one above, poor management, money not forthcoming, broken promises, gradual decline, and eventual y ending up in the basement league, before one final poor season put them where they are now, in non league football, holding the rest of the league up.
I'm sure there are other similar cases to the above throughout the league system, Scunthorpe, Southport, Chester, Wrexham, to name but four whose fans thought a relegation or two would only be a blip before they came back, but ended up being terminal for their clubs existence in the top four divisions of the league.