The University of Michigan will pay outgoing athletic director Warde Manuel $7.1 million in a buyout, according to The Detroit News , in addition to retirement and health benefits after waiving a service requirement of 20 years as part of a settlement stemming from an internal investigation leading to his resignation this month .
Manuel, who will step down at the end of the calendar year, will receive a singular payment of $7,143,346 within three weeks of the date of his resignation, according to his settlement with the school and also gets a retirement contribution of $108,000 and all retiree benefits. As part of the settlement, Manuel agreed to a two year non-compete clause not to serve in an administrative role at another Big Ten school and Michigan handled his legal fees for the proceeding, totaling $82,000.
Manuel signed a five-year extension as Michigan's AD in 2024 through June 2030 worth nearly $2.5 million annually.
According to recent findings of Michigan's internal investigation into leadership and the athletics department, the culture review identified three overarching areas for improvement -- leadership accountability, organizational structure and reporting culture.
As it relates to Manuel's role, the investigation "identified failures to quickly and effectively act on allegations of wrongdoing by Athletic Department employees."
The department's review made clear that change was necessary. Manuel's compensation package reflects appreciation for his accomplishments and also ensures an embattled tenure ends comfortably.
Manuel's job was reported to be in jeopardy ahead of a meeting in which Michigan leaders were expected to receive the findings of an investigation into the culture of the Wolverines' athletics department and consider a response. The investigation came amid fallout from the Sherrone Moore scandal. University president Domenico Grasso confirmed the investigation expanded into "an independent evaluation of culture, conduct and procedures throughout our athletics department."
Manuel was reportedly "weighing his options," which included retirement, a source told CBS Sports earlier this month .
The university has no plans to release the Jenner & Block findings and per The Detroit News, Manuel was not privy to the information.
In Michigan's statement to CBS Sports earlier this month, the Wolverines said "the university does not have any additional public statements planned regarding these matters, nor does the university plan to release any associated documents. We can confirm, however, that Director of Athletics Warde Manuel will step down at the end of the calendar year."
Manuel released a statement July 20 following Michigan's announcement that a change in leadership was coming.
"I am very proud of all the successes and accomplishments of our athletic department over the past 11 years," Manuel said. "We have tremendous coaches and professionals who support our outstanding student-athletes every day. I am happy President (Domenico) Grasso asked me to stay on to work with him to implement the recommendations for continuous improvement.
"I promise everyone I will have more to say about my decision at the appropriate time. Forever, Go Blue."
During Manuel's tenure at Michigan, the Wolverines most recently won national championships in football (2023), men's basketball (2026) and men's gymnastics (2025). The women's gymnastics team captured the national title in 2021. Manuel also deserves credit for retaining Jim Harbaugh after the disastrous 2020 season, a decision that eventually produced a championship and multiple wins over Ohio State .
Still, Michigan's success was repeatedly accompanied by scandal, fractured oversight and questions about accountability at the highest levels.