If you turn up a mandrel so that the bore of the sprocket is a really snug fit, using tungsten carbide tip, (brazed or replaceable, you should be able to turn down the O D of the sprocket where the seal used to run.
Before you do this, decide what diameter you want to use, and Google "Speedisleeve". A Speedisleeve is stainless steel sleeve prepared as a track on which a rubber lipseal will run, with a built in "break off" groove near the flanged end.
So the diameter to which the sprocket is turned, based on the I D Speedisleeve that you choose to replicate the original seal diameter, pre wear).
The Speedisleeve comes with a fitting dolly, (you may wish to use Loctite, to make certain that it stays in place)
You tap the sleeve into place and then break off the flange against which the dolly seated. If you are worried about the rough edge, break the rough edge with a fine stone, or diamond hone, taking care not damage any of the seal running surface.
You then have a nice new, beautifully prepared, surface on which the new lipseal is to run.. AND it will provide a better, lower friction seal, (and probably last longer than the original felts). BUT, DO lubricate the sleeve before you bring it into contact with the seal.
This assumes that you can fit a lipseal instead of the felt seal. (You might need to turn up a housing and bolt it into place in place of the felt seal housing, unless you can find a suitably sized lipseal. If push comes to shove, you could turn up a sleeve with OD to match the felt housing, and the ID to suit the lipseal.
To insult your intelligence, the seal is fitted with the lip and garter spring facing towards the gearbox, so that you see the flat face of the seal after assembly.
If using a lipseal not possible, still use the sleeve to reclaim the seal diameter and fit new felt or ropeseal, but again, lubricate before fitting the sprocket and start up. If a ropeseal, soak in oil for 24 hours before fitting, and then burnish into position with a clean round bar.
Howard