If they terminate his contract he can simply sue them for breach of contract and seek both punitive and aggravated damages which will in turn increase his compensation on judgment. I wouldn’t advise the club to go down that route.I wonder if the club will support the manager and his office and terminate Özil's contract early or allow this to fester. This presents a bad picture to any player thinking of joining and those who are here.
As for the rest of your post. I agree I said the same a few weeks back that it will have a adverse effect on future signings though other posters weren’t insightful enough to understand the point. Limited minds and all.