Michigan AD Warde Manuel to Get $7M Settlement

Michigan athletic director Warde Manuel will receive more than $7 million as part of his buyout plus additional perks, according to a copy of the agreement obtained by Front Office Sports.

The agreement comes on the heels of Michigan’s announcement that Manuel will step down in the wake of investigations into the culture of Michigan athletics and into the handling of former football coach Sherrone Moore’s affair with then-executive assistant Paige Shiver. 

Manuel will stay on until the end of the calendar year, and will take on a special assistant role advising the university on how to implement reforms stipulated in the report, the university previously said. 

The Detroit News first reported several of the contract details.

The separation agreement shines a light on some details regarding his status with Michigan. It is titled as a “settlement agreement,” and stipulates that it constitutes a “complete settlement of Mr. Manuel’s claims against UM.” The settlement also notes that Manuel’s personnel file with Michigan will reflect that he “voluntarily resigns”. The agreement was signed by Manuel on July 17, 2026—one day after a Michigan university board meeting where his future was not discussed, and several days before the school made the announcement about his future.

Manuel will continue to receive his current monthly compensation between now and his resignation in December, according to the agreement. Then, within 21 days of leaving Michigan, Manuel will receive one lump-sum payment of $7,143,346. He will also receive a retirement contribution from Michigan in the total of $108,000.

Manuel will also receive “former athletic director privileges” including “sports tickets and golf privileges.” The school has agreed to pay $82,000 worth of attorneys’ fees. 

In addition, the contract included a non-compete clause, stipulating he would not be allowed to work for any Big Ten school as an athletic director or high-ranking athletics official for two years.

His current contract, which has been in place since an extension in 2024 and runs until mid-2030, pays out a base salary of $1.9 million per year with additional compensation bringing total pay to about $2.4 million, according to multiple reports. 

A Michigan spokesperson did not immediately respond to a request for comment.

The results of the investigation into Michigan athletics, conducted by Chicago-based law firm Jenner & Block, found some measure of fault with Manuel—but it did not appear to draw strong enough support to terminate Manuel for cause.

A summary of the investigation published by Michigan last Monday found that there was no “widespread” misconduct within the athletic department and that no one had “contemporaneous evidence” of Moore’s affair. (After being fired for cause himself, Moore was arrested after appearing at Shiver’s house and threatening self-harm; he was sentenced to 18 months probation.)

But the report did identify areas of improvement with regard to handling and investigating allegations of misconduct, as well as fostering an environment where employees and players didn’t fear retaliation. 

The findings said Manuel in particular “demonstrated important leadership strengths, particularly his commitment to student-athletes. At the same time, it identified failures to quickly and effectively act on allegations of wrongdoing by Athletic Department employees.” (Subsequent reports, however, suggested the investigation produced evidence that Manuel knew, or at least suspected, the affair as early as 2024.)

In a video address Monday, Michigan president Domenico Grasso stood by the athletic director who had seen the department through not just multiple scandals, but also multiple national championships. “I have the deepest respect for Warde and his countless contributions to Michigan,” Grasso said, adding that he himself asked Manuel to stay on until the end of the calendar year.