You don't sue your employer and then keep working for them Dave. He's out the door.
There could be method to the madness.
If he would stay , he would like to command a higher paycheck for the mess he got in. That has its limits due to the cap space Essendon has to oblige to.
However.....As far as I know, the salary cap is not related to the financial situation of the club.
A court case resulting in a lump sum payment for Essendon wouldn't fall under the salary cap, but normal operating expenses. Maybe even insurance. They can give him whatever ( he/they) want and still keep a warchest to recruit.