University of Michigan athletic director Warde Manuel will depart at the end of 2026 under a separation agreement that provides him with a substantial financial package and other benefits, while allowing his personnel record to characterize the exit as a voluntary resignation.
According to details of the settlement obtained by Front Office Sports, Manuel will continue receiving his regular monthly compensation through December. Within 21 days of his departure, the university will pay him a lump-sum amount of $7,143,346. Michigan will also make a $108,000 retirement contribution on his behalf and cover $82,000 in attorneys’ fees. In addition, Manuel will retain “former athletic director privileges,” which include sports tickets and golf privileges.
In exchange, Manuel’s personnel file will state that he “voluntarily resigns.” The agreement, signed by Manuel on July 17, 2026, is framed as a complete settlement of any claims he might have against the university. It also includes a two-year non-compete clause preventing him from serving as an athletic director or in a high-ranking athletics role at any other Big Ten school.
Manuel’s current contract, extended in 2024 and running through mid-2030, carried a base salary of approximately $1.9 million with total annual compensation around $2.4 million. The separation effectively functions as a negotiated buyout rather than a for-cause termination.
The move follows an independent investigation by the law firm Jenner & Block into the culture of Michigan’s athletic department, prompted in part by the handling of former football coach Sherrone Moore’s affair with then-executive assistant Paige Shiver. The report found no widespread misconduct and no contemporaneous evidence of the affair within the department. It praised aspects of Manuel’s leadership, particularly his commitment to student-athletes, but criticized failures to respond quickly and effectively to allegations of wrongdoing by department employees. Subsequent reporting indicated Manuel may have known or suspected the relationship as early as 2024.
University of Michigan President Domenico Grasso announced Manuel’s departure earlier this week, expressing “the deepest respect” for his contributions and asking him to remain through the end of the calendar year in a transitional special assistant role focused on implementing reforms recommended by the investigation.
Manuel has led Michigan athletics for nearly 11 years, a period that included national championships in football and men’s basketball amid several high-profile controversies. A university spokesperson did not immediately comment on the specific terms of the separation agreement.
Michigan fans will see this is part of the price of winning. The rest of the country won't see this as favorably.