fazersharp. At a guess I'd say the clutch is just above the stationary oil level but the gear on the clutch might be in it. Either way when it's running oil will be splashed about all over the place and the clutch will get some and gears will get a good soaking. The clutch push rod is fairly well hidden in there and with centrifugal force wont see much of of the oil. More of a worry would be grit etc getting in if the seal was really bad. Unless you're thinking of riding in about 18 inches of water and the seal is not making contact I wouldn't worry about it.
Edit. Actually the gear on the clutch basket is above the stationary oil level and it is the oil pump gear that dips into it. Still the same effect though of oil all over the place when running.
Edit. Actually the gear on the clutch basket is above the stationary oil level and it is the oil pump gear that dips into it. Still the same effect though of oil all over the place when running.