Michigan will owe Warde Manuel a lump-sum payment of $7.1 million within 21 days of his resignation as athletic director, according to a settlement signed July 17 and obtained by The Athletic through an open records request.
Michigan announced last week that Manuel will step down at the end of 2026 after 11 years as athletic director. The announcement came as Michigan released conclusions from an external investigation that was critical of the athletic department’s response to allegations of employee misconduct, including the relationship between former football coach Sherrone Moore and his executive assistant.
The negotiated settlement is close to the full buyout that Michigan would have owed Manuel, 58, under the terms of his contract, which ran through 2030. In addition to the lump-sum payment, Michigan will owe Manuel a retirement contribution of $108,000 and $82,000 in attorney fees. He will be eligible for retirement benefits and receive sports tickets and golf privileges offered to former athletic directors.
Manuel’s settlement includes a non-compete clause that prevents him from working for another Big Ten school for two years. The university agreed to “defend and indemnify” Manuel pursuant to its policies, and Manuel agreed to cooperate with the university as required by that policy. His final day of employment will be Dec. 31, at which point he will voluntarily resign, according to the agreement.
Manuel’s buyout adds to the price Michigan will pay to address fallout from Moore’s firing. The university spent roughly $12 million on two investigations conducted by the law firm Jenner & Block — one into Moore’s relationship with his executive assistant and one into the broader culture of the athletic department.
Michigan has not released detailed findings from either investigation but released a set of recommendations and conclusions last week. The university said the investigation did not find widespread misconduct in the athletic department, but it “identified failures to quickly and effectively act on allegations of wrongdoing by athletic department employees.”
Michigan president Domenico Grasso said he would begin the search for a new athletic director, but Michigan is not expected to hire Manuel’s replacement before a new president is announced sometime this fall.
