Maurizio Sarri responded furiously to Kepa Arrizabalaga residing on the ground in Wembley
Chelsea is in "disarray" and his current situation is "embarrassing," said former England striker Ian Wright.
Goalkeeper Kepa Arrizabalaga appeared to defy coach Maurizio Sarri's attempt to replace him in the Carabao Cup final on Sunday. Chelsea is not allowed to sign players in the next two transfer windows.
"There is some sadness with what's going on," Wright told Radio 5 live.
"Something must happen, he can not continue."
Wright adds, "It gets embarrassing every day."
Sunday's loss to Manchester City effectively ended Chelsea's national trophy hopes this season. The Blues are 16 points behind the leaders of the Premier League, Liverpool, sixth, but qualify for the last 16 games of the Europa League.
Kepa refused to replace Willy Caballero during the overtime at Wembley with Sarri, visibly angry at the time of the incident, and the Spanish keeper later stated that there had been a "misunderstanding".
Wright stated that he had never witnessed such an act of "insubordination" before, but he recalled a similar incident when he had played for Celtic at their famous Scottish Cup. loss to Thistle Caledonian Inverness in 2000.
"The closest I've seen about it was in the locker room when [former striker] Mark Viduka refused to play in the second half against Caley, "he added.
"I was in the locker room trembling because I knew that if he refused to continue, I would be enraged by [then manager] John Barnes. It did not go very well. "
Chelsea have only six wins in their last 12 games, including a 6-0 league loss to City and a 4-0 loss to Bournemouth.
Wright added, "I have not seen Chelsea [since Roman Abramovich became owner in 2003] in the utmost dismay that they are now.
"You have a man [Sarri] but that does not quite happen to him. It does not seem like it improves anytime soon.
"Do they stay with him? It seems that the easiest thing to do is to move him forward."
The situation in Kepa was a big misunderstanding – Sarri
"Fools lead the asylum"
Former Blues striker Chris Sutton said he could not see the club winning any major titles in the near future.
"It was a mutiny," he told BBC Radio 5 live, referring to the incident involving Kepa.
"It was anarchy, Chelsea was lawless, the madmen run the asylum, the manager looks so weak, something has to be given.
"In seconds and minutes, it has told us everything we need to know that this group of Chelsea players will not be able to fight for a Premier League and a Champions League in the near future.
"They are not a team."
"Kepa completely undermined Maurizio Sarri"