Poor guy. This does not appear to be just a lipoma (fatty tumor). I would highly recommend having Allie seen by your vet to get this tumor surgically removed and sent off for lab analysis to determine if this is a cancerous mass or a benign one. Hopefully it is benign and nothing to be worried about. The vet will likely place Allie on some antibiotics and pet friendly anti-inflammatory medication first to get the skin to calm down before surgical removal is done. But surgery is the best and often-times only option when a mass has gotten this large and has ulcerated. Until you can get her in, its best to clean this mass with Betadine diluted 50:50 with warm water to keep it from getting infected. Then rinsing with sterile saline from your local pharmacy.
I hope that Allie's mass resolves soon! Best wishes and take care.