Pellegatti explains the economic ‘issue’ of Pioli’s exit: 'We always underestimate it'

Carlo Pellegatti has suggested that AC Milan and Stefano Pioli will need to sit down and negotiate the terms of his exit, something that is ‘underestimated’.

A state of confusion exists surrounding Milan at the moment and more specifically the issue of who will become the new head coach to replace Pioli once the 2023-24 season. However, the one certainty does seem to be that it is time for a change in the dugout.

It is not just as straightforward as saying goodbye to Pioli and welcoming someone in though, at least not in financial terms, because the current manager has a contract until June 2025 and therefore it would fall under early termination.

Speaking on Radio Rossonera today, Pellegatti analysed the problem relating to Stefano Pioli ‘s contract and how this may impact the choice of the next coach.

“Today Il Mattino said that Conte is between Napoli and Milan. During the day I received yet another denial from Milan. Even for Conceicao they keep telling me no. I always hoped for Thiago Motta but they tell me that he won’t be a ‘very good’ coach,” he said.

“In my opinion, the Pioli issue needs to be resolved, we always underestimate it. If he doesn’t negotiate a severance package with Milan worth 1/2/3 million… we don’t know if we need to pay him 8 million euros or not.

“It’s one thing to find a coach with a net 5 [million salary] and then a 3 [million] severance pay for Pioli, it’s another to have to pay the 8 [the last year of Pioli’s deal].”

What Pellegatti is essentially implying, rather logically, is that if Milan are unable to agree a severance deal with Pioli and have to pay the full €8m gross for the last year of his deal, it could well have an impact on the budget available for a new coach.