Michigan athletic director Warde Manuel is set to receive a buyout settlement exceeding $7 million as he prepares to step down from his role at the University of Michigan by the end of 2026. The agreement, signed on July 17, 2026, includes a lump-sum payment of $7,143,346, a retirement contribution of $108,000, and ongoing monthly compensation until his resignation in December. It also grants him former athletic director privileges, such as sports and golf tickets, with the university covering $82,000 in legal fees.

The settlement follows investigations into the culture within Michigan athletics and the university’s handling of former football coach Sherrone Moore’s affair with a staff member. Though the probe identified areas where Manuel’s leadership was lacking—particularly in swiftly addressing employee misconduct—it did not find cause for termination. The investigation, conducted by Jenner & Block, noted Manuel’s strong commitment to student-athletes but criticized slow and insufficient responses to allegations.

Manuel’s departure is further marked by a non-compete clause restricting him from serving as an athletic director or senior athletics official at any Big Ten school for two years. His current contract, extended in 2024 through mid-2030, pays a base salary of $1.9 million annually, with total compensation around $2.4 million. Despite the controversies, Michigan President Domenico Grasso expressed deep respect for Manuel’s contributions and requested that he continue advising the university on reforms for the rest of the year.

This transition caps a complicated chapter for Michigan athletics, as Manuel navigated the department through multiple scandals as well as significant athletic successes, including national championships. The university’s approach seeks to balance accountability, compensation, and continuity, aiming to implement necessary reforms while honoring Manuel’s legacy and experience.