On the face of it, it looks like Leicester are in breach of some players' contracts of employment. If my employer tried to wriggle out of their contractual obligations to me (in a job where my customers don't place the same expectations of loyalty on me) then I would be seeking advice from a lawyer. I can sympathise to some extent. However, I think this has served as a long overdue reality check for clubs and players alike. Clubs have been sailing so close to the wind financially for so long now, that they were always going to be vulnerable during challenging economic times. The bubble has burst and players will not have the same earning potential in future. However, where a contract already exists something has to give.
I have a number of friends in the airline industry, many of whom are being asked to re-apply for their existing roles on inferior terms or face redundancy. A very similar scenario to that which many rugby players seem to have been presented with.