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A legal confrontation has emerged between AC Milan and their dismissed head coach Massimiliano Allegri, with the club alleging that he had already reached an agreement with Napoli before his termination, and therefore is not entitled to any severance payment.

Milan issued a single official statement announcing the dismissal of Allegri, sporting director Igli Tare, CEO Giorgio Furlani, and technical director Geoffrey Moncada, following the club’s failure to qualify for the UEFA Champions League.

Within just a few hours of his sacking, Allegri was strongly linked with the vacant managerial position at Napoli, which opened up after Antonio Conte parted ways with the club by mutual consent.

Although reports suggest Napoli have decided to appoint him, the official announcement is expected to be delayed as legal complications between Milan and Allegri continue to unfold.

According to reports from Calciomercato.com and La Gazzetta dello Sport, Allegri is demanding a payout between €500,000 and €1 million for the early termination of his contract with Milan. His existing deal still had one year remaining, valued at €5.5 million.

The proposed contract Allegri is ready to sign with Napoli would see his base salary reduced to €4.5 million per season, though it includes performance-related bonuses tied to Champions League qualification and Scudetto achievements.

Allegri reportedly believes that a clause in his Milan contract entitles him to compensation covering the difference between his previous wages and his new deal at Napoli.

Milan’s management, however, are unwilling to pay any severance, arguing that Allegri had already agreed personal terms with Napoli before the final Serie A loss to Cagliari and his subsequent dismissal.

No resolution is expected before June 3, and the dispute may continue for several more weeks as both sides prepare for potential legal proceedings.