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Michigan athletic director Warde Manuel will receive a $7.1 million buyout as he steps down from his position on December 31, 2026. The agreement, announced on Monday (July 27), includes extended healthcare and retirement benefits, along with a non-compete clause preventing him from working at another Big Ten school for two years.
Manuel's departure follows a third-party investigation into the athletic department's culture, which found he did not act quickly on employee misconduct allegations. Despite this, the investigation, conducted by Chicago-based law firm Jenner & Block, did not find grounds to terminate him for cause. The report highlighted Manuel's leadership strengths but noted his failure to effectively address wrongdoing.
According to Front Office Sports, Manuel will receive a lump-sum payment within 21 days of leaving, along with a retirement contribution of $108,000. He will also enjoy "former athletic director privileges," such as sports tickets and golf access, and the university will cover $82,000 in attorney fees.
Michigan President Domenico Grasso expressed respect for Manuel's contributions, noting that he asked him to remain in a special advisory role to help implement reforms. Manuel's contract, extended in 2024, was set to run through 2030, with a base salary of $1.9 million per year, totaling about $2.4 million with additional compensation.
The investigation into Michigan athletics also revealed weaknesses in accountability and reporting structures. It followed the firing of former football coach Sherrone Moore over an inappropriate relationship, which led to his arrest and probation. Other scandals in recent years included recruiting violations and a sign-stealing scheme within the football program.
Eleven Warriors reported that Manuel's personnel file will reflect a voluntary resignation, and the agreement constitutes a complete settlement of his claims against the university.