Gianluca di Marzio via MilanNews.it is now reporting that the issue of the 7-8 million euros being demanded by Red Bull pertains directly to Ralf Rangnick and not AC Milan i.e. the issue is between the company and their employee. The pay they are demanding from Rangnick is to approve the termination of his contract.
Gazzetta: Rangnick is close to saying goodbye to Red Bull. His contract could be terminated for 2M€. He will work with Geoffrey Moncada and Hendrik Almstadt. He will bring 8 people with him as technical staff. Maldini could stay in a role similar to Nedved's at Juventus. pic.twitter.com/3H916QIhEY— TeamMilanAC (@TeamMilanAC) July 19, 2020
Milan are confident that the former Schalke 04, Hoffenheim, RB Leipzig and RB Salzburg manager will find an agreement to this through his lawyers. Rangnick has not signed his contract with Milan yet as he is still under contract with Red Bull but this is expected to be resolved soon. The agreement is in place.