Shouldn't affect performance. The pads are attached via strong double sided tape rings. They're difficult to remove. You'll need new tape rings to attach new pads. I think the rings are between the pad and that felt-like material. The felt-like material is there to allow air in and out of the ear cup to help avoid high pressures which could damage the driver. Dekoni sells replacements. The Hybrid Elite is supposedly better than the stock and they may come with adhesive rings. I think they're around $85.
The Dekoni Hybrid Elite is what I have on my LCD-4. Very comfortable and very easy to install. Dekoni supplies the adhesive rings with the pads.
Thanks guys. That’s very reassuring and helpful.For aesthetic reasons , just put a bit of glue on the end of a toothpick and apply to the torn area. Then press that area against the housing for a minute to help it bond and it will look good (if done correctly using the glue sparingly). Otherwise, you can leave it as is because since it’s not going to affect performance.