Complex sentence: Innocent was succeeded by Alexander IV, who was under increasing military pressure from the Empire and could no longer afford to pay Henry's expenses, instead demanding Henry to compensate the Papacy for the £90,000 spent on the war so far.
Split into simpler sentences: Innocent was succeeded by Alexander IV, who was faced increasingly military pressure from the Empire. He could no longer afford to pay Henry's expenses, instead demanding Henry to compensate the Papacy for the £90,000 spent on the war so far.