It would, and I’d implode.  But can see why he would ask for it, and why it would be considered.  Same reason as a free agent he could command a big salary at Milan, he could command one to stay here.
Giving him £130k a week for 4 years is still a few million cheaper (over the 4 year term) than getting another risky £50k a week striker for £20million purchase price.  Given how abysmal we are at finding those £20m forwards on low salaries, if Dom still looked arsed, it would definitely be worth weighing up the two options.  Particularly with a new manager and style of play, rather than getting another Beto/Niasse.
Its the demeanor and missed chances that clinch it though.   Best for all to walk away, even if it does make some financial sense to overpay him to stay.