95 Waveraider 701 stator

[drdemo35]

I pulled the flywheel to inspect the stator since I have been stumped to find the starting problem on my raider. It started out barely firing enough to get me out of the water and eventually would not fire at all. All resistance, compression, carb and other tests seemed good so I finally pulled the flywheel to inspect. I am an amateur with these engines but to me it seems like it should be clean and dry around the stator plate but I found oil and/or grease coating all of it. Should it be like this or do I have a bad crank seal and/or oil pump leaking internally?

I'm guessing this could result in the stalling and starting problem?