What should happen to City?

Put an *by their titles, null and void cheating bas**rds and relegate to div 2

Null their titles and vacate them for the years in question. So those years have no champions. But if they give them to the second placed teams….so be it. You’d be hard pressed to say the 2nd place team didn’t earn the title if the 1st place team has cheated. 

Nothing is going to happen to them. Effectively, it's a case of "too big to fail". Removing them from the PL would be too hurtful to the league's valuation, so there's no way the FA would shoot themselves in the foot.

You simply cannot use Everton as a precedent. If you remove Everton, there's literally 10 teams like them (similar valuation, fanbase, stadium, etc.) ready to take their place.
Everton simply do not matter, despite what their fans would like to believe... But City unfortunately do matter.

Nothing is going to happen to them. Effectively, it's a case of "too big to fail". Removing them from the PL would be too hurtful to the league's valuation, so there's no way the FA would shoot themselves in the foot.

You simply cannot use Everton as a precedent. If you remove Everton, there's literally 10 teams like them (similar valuation, fanbase, stadium, etc.) ready to take their place.
Everton simply do not matter, despite what their fans would like to believe... But City unfortunately do matter.

City in any other business would be a total failure. They've obviously created a successful football team but at huge losses absorbed by their owners who are happy to lose it.