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is this bad ?

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No cracks. there is some play but it's got to be the seals as much oil that covered the rear end at first I thought it was supposed to be black and if u look closely I caught it in mid drip but just this side





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The transmission looks like a non-hydro/gear transmission. Not sure how old it is, but the old gear transmissions were designed with bronze bushings to support the axle tube at the case rather than roller bearings like the newer design. With bushings the axle tube wears to top side of the bushings out and would take the seal with it and leak. This does not happen with roller bearings. On my old 725, I replaced the bushings with roller bearings by boring the case out and the problem went away.

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Many overfill the transaxle, I have stopped several transmissions from leaking by draining oil down to the correct level.

There is a level/fill plug on the side of the transaxle Some have a street elbow screwed in. Removed the plug/street ell and let the axle case drain until it no longer runs out and you are then at the correct level.

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