Anthony, that looks to be repairable. Painstaking, but do-able. It looks to be surface mounted with the 3 prongs going down into the circuit board.
Repair would mean carefully taking out the circuit board and flipping it over. This should show the solder spots of the prongs. Using a small soldering iron and a small solder vacuum (to suck up the molten stuff) it should be do-able.
If it was me, I'd try cutty sark's approach first. Get a can of electronic cleaner from a Radio Shack and liberally squirt it down the shaft to the potentiometer proper and rotate it back and forth a dozen times or so. Might work. For a while, anyway.
Ken