The University of Michigan announced it will provide athletic director Warde Manuel with a $7.1 million buyout as part of a settlement agreement following his resignation earlier this month. Manuel will receive a lump sum payment of $7,143,346 within three weeks of his resignation date, along with a retirement contribution of $108,000 and full retiree benefits. The settlement also included the university covering his legal fees, which totaled $82,000.
As part of the agreement, Manuel waived a 20-year service requirement that was part of his original contract and agreed to a two-year non-compete clause preventing him from serving in an administrative role at another Big Ten school. Manuel’s departure comes following an internal investigation into the athletics department’s culture and leadership practices. The investigation identified three key areas needing improvement: leadership accountability, organizational structure, and reporting culture. According to the findings, there were failures to act swiftly and effectively on allegations of wrongdoing by department employees.
Manuel had signed a five-year contract extension in 2024 through June 2030 with an annual compensation of nearly $2.5 million. He will officially step down at the end of the calendar year. The internal investigation was conducted amid broader scrutiny of the athletics department and came in connection with fallout from the Sherrone Moore scandal. University president Domenico Grasso confirmed the review expanded into an independent evaluation of culture, conduct, and procedures throughout the athletics department.
During his 11-year tenure, Michigan athletics achieved multiple national championships, including football in 2023, men’s basketball in 2026, and men’s gymnastics in 2025, with women’s gymnastics claiming the title in 2021. Manuel was also credited with retaining football coach Jim Harbaugh following the 2020 season, a decision that eventually led to championship success and victories over Ohio State. The university stated it has no plans to release the investigation findings publicly and confirmed Manuel was not provided access to the report information.
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