'84 VF750F: Shifts, but no power to rear wheel

Hello all. Firstly, I'm new to the forum and was referred here by a friend. The forum has already been more than helpful for my VF needs! Secondly, I've run into a problem... When downshifting into first gear out riding today, I heard a loud "clunk", and now it seems that all of the gears do the same thing as neutral. What I mean is, there is no power to the back wheel whatsoever, and despite being in gear, the motorcycle rolls as if it were in neutral. The chain is still on the sprockets, and so I'm not sure what the issue may be or what that "clunk" was. Any thoughts?

 

Going to be ugly whatever it is, first you will need to start looking inside the clutch cover

 

Like you read my mind. :tinfoil3:

 

Buy a newer bike and move on.