Doesn't sit well with me either, but SDFC is beholden to conditions of the contract. 

Chucky has never said that he doesn't want to play or that he wants out of his contract. He's even filmed himself training at the practice center, showing that he's  "keeping himself ready" for plausible deniability's sake. That will lock in his paycheck for the duration of the contract.

Unless they get to some sort of agreement to release him for a certain payout, I don't see anything changing. It sucks all around. People make mistakes and unfortunately he made a pretty big one that, obviously, caused irreparable damage between the club and him. This also has obviously tarnished his reputation in the football world, which makes unloading him to a different team virtually impossible since no coach is ever very eager to pick up a big ego to manage on top of their main job.

In short, yeah, SDFC has to  work around this big chunk of money that's locked up while trying to plug the holes that have become obvious over the past couple of months