I would say pending investigation but an employer can (and I think should) operate with a lesser burden of proof than we require for legal punishment.

I think the problem is that most teams are fine with any level of disgrace if it doesn't impact gameplay.

I thought most contracts do have some kind of morals clause? I don't know if it automatically lets their entire compensation be voided, but I thought there is something about that in most contracts, i.e. "conduct detrimental to the team"