Michigan AD Warde Manuel to receive $7.1 million buyout after resignation as part of settlement, per report

The University of Michigan has finalized a settlement agreement with outgoing athletic director Warde Manuel. As part of his resignation, Manuel will receive a buyout payment of $7.1 million. This settlement also includes additional compensation in the form of retirement contributions and full retiree health benefits, with the university waiving a 20-year service requirement.

This separation follows an internal investigation into the athletics department. According to university findings, the review identified significant issues regarding organizational structure and leadership accountability, specifically noting failures to address allegations of employee wrongdoing in a timely manner. As a result of this settlement, Manuel is subject to a two-year non-compete clause that prevents him from holding administrative roles at other Big Ten institutions.

Manuel, who initially signed a five-year contract extension in 2024, will step down from his position at the end of the calendar year. While the school has opted not to release the full results of the investigation conducted by Jenner & Block, the university leadership has acknowledged that structural changes are necessary to address the culture and oversight failures within the athletic department.

During his 11-year tenure, Manuel oversaw multiple national championship successes across sports including football, men’s basketball, and gymnastics. However, these accomplishments occurred alongside a period of intense scrutiny involving departmental scandals and fractured oversight. The university president, Domenico Grasso, has asked Manuel to stay on through the remainder of the year to assist with the implementation of recommendations aimed at improving department procedures.