The three-time premiership player was announced as Michael Voss' replacement on Tuesday after being confirmed as the new coach at a board meeting on the same day.
Leppitsch just the tonic, says former teammate
Richmond CEO Brendon Gale said Tigers were aware he was in the running for the job and considered his appointment a success for both him and the club's football program.
"We've been very open and he's contracted but we would certainly never stand in the way of a senior coaching position," Gale told AFL.com.au.
"We encouraged him and supported him and we're happy for him.
"It's terrific. It's something he's set out to achieve and he's made a big impact with our group, collectively and individually with his defenders.
"He's been a terrific individual who will be missed by our club but it's a great opportunity and he'll do a great job.
"It's also probably a feather in our cap as well, that our football program has had an impact on him as well."
Leppitsch has completed seven years as an assistant coach – three at the Lions and four at Richmond – that Gale said was a worthy apprenticeship.
With the Lions' board currently in mediation with the AFL Commission and players continuing to express desire to move elsewhere, the club is working through some issues.
Gale said Leppitsch's previous relationship with the club could be a significant factor in mending some of that.
"It's not the only thing but it's a pretty important thing to draw on that connection and passion," he said.
"It's a club that he knows well and he's got a long and strong association with.
"He's got some ability and I'm sure he'll do well."
Gale said Richmond football manager Dan Richardson would now sit down with coach Damien Hardwick and examine the options for Leppitsch's replacement.
Twitter: @AFL_JenPhelan