Now arent you glad you found that before you where out on the water? Have you climbed under the boat and inspected it from underneath? it sort of looks like the PO let the keel swing into it instead of lowering it slowly. thats going to need to be replaced and try to get a look at the keel and be careful I think that keel is weighted (on a personal note: working on my

I dropped the hanger on my forehead when reinstalling it I have a tiny scar over my left eye)

Edit: from the Manual -On the other boats, the cable passes through a stainless tube
containing a wear surface. If the cable, the wear bolt, or stainless tube show any
noticeable wear or abrasion, replace the worn part. Be sure to re-assemble the new
part or parts exactly as they were before being disassembled.
If the boat is kept in the water, it is recommended that the keel pivot bolt be
removed every 12 months [while the boat is on a trailer] and inspected for signs
of wear. The holes in the kill and the inside of the keel trunk should be given a
similar inspection. To gain access to the pivot hole, remove the keel pin and lower
the head of the keel until the hole is exposed. Keep the retraction cable snug to
prevent the keel from falling sideways on the trailer. The rubber washers on the
keel pin bolt should also be inspected. Cover all washers with a liberal coat of a
good quality bedding compound. Re-assembly of the keel pivot bolt should be as
follows:
Be very careful when working with the keel--it is very heavy and can cause injury
if it falls on you.
When the keel pivot bolt is re-installed, make sure that it passes though
the hole in the keel.