Cricket Australia confirmed Arthur's sacking and Darren Lehmann's appointment as his successor. Off the field, problems first surfaced when four players were banned for the Mohali Test against India in March, while David Warner was suspended until the Ashes opener after he was involved in a bar-room altercation with England's Joe Root.
Five of his team-mates had also been out drinking with him that night - which came after Australia's timid opening Champions Trophy loss to England. While Chappell believes that proved the death knell for Arthur he said Clarke should also shoulder some of the blame for a lack of leadership in the squad.
"He's a terrific tactician, I think he's a terrific captain - but that's the on-field part," Chappell told Melbourne radio station 3AW. "I have serious queries after the last few months about his leadership ability, which is the off-field part of it."
Speaking about Arthur on Cricinfo, he added: "It is a shock, but Cricket Australia have thought we can't win with Mickey Arthur, let's hope that sacking him and bringing in someone else at least gives us a chance to win."
Clarke admitted some share of the blame for Arthur's departure in a press conference at Bristol on Monday, although he is yet to play a game on tour following the return of his long-term back problem. The 32-year-old has spent the majority of his time receiving specialist treatment in London.
Former Australia quick Rodney Hogg described Monday's events as one of the "biggest bombshells" in recent memory, but claimed Australia would be better off for it.
The 62-year-old, who played 38 Tests, backed Lehmann to turn around the fortunes of the Australian side and believes he is already better equipped to lead them than Arthur, who leaves with 18 months still to run on his contract.
"It is probably the biggest bombshell I can remember in Australian cricket history and I'm very happy," he told SEN Radio. "It's not a personal slur on Mickey Arthur but I think he was out of his depth. At the moment we've got a pretty weak side - there are a lot of troubles and he hasn't been able to handle it.
"If someone said to me who should be leading the Australian cricket team I would say Darren Lehmann. His strategy will be covered. He'll walk straight into the job and do a far better job than Mickey Arthur could do in a pink fit."
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