Warde Manuel’s Massive Buyout Creates A Costly Contract Conundrum If Michigan Wants To Fire Him

Warde Manuel Scandal Fired Buyout Michigan Meeting Statement Contract Extension Cost
iStockphoto / Junfu Han / USA TODAY NETWORK via Imagn Images

Warde Manuel appears to be gearing up to go after Michigan for every dollar he is owed in his contract with the university. It does not sound like he plans to step down, which would set him up for a multimillion-dollar buyout if he gets fired.

The situation in Ann Arbor remains fluid.

Should the university decide to fire its athletic director without cause after nearly 10 years of college football and basketball scandals, it would be expensive. However, an recent investigation could provide the Wolverines with an out.

Warde Manuel is not going to step down.

The University of Michigan spent a lot of money to hire an outside law firm, Jenner & Block, to conduct an investigation into the athletic department. The investigation is nearing its conclusion.

Michigan has a history of “scandals” that dates back almost a full decade.

  • 2016 – Wide receiver Grant Perry pleads guilty to assault
  • 2018 – Director of performance Fergus Connolly arrested for drunk driving, hit and run
  • 2020–22 – Michigan settles abuse claims involving Dr. Robert Anderson for $490 million
  • 2020 – Basketball star Zavier Simpson crashes athletic director’s family car and lies to police
  • 2020–21 – Michigan breaks “dead period” recruiting rules during pandemic
  • 2021 – Head basketball coach Juwan Howard threatens rival coach
  • 2022 – Michigan fires hockey coach Mel Pearson over toxic culture allegations
  • 2022 – Juwan Howard hits rival coach
  • 2022 – Running back Donovan Edwards retweets antisemitic post
  • 2022 – Defensive tackle Mazi Smith charged with carrying concealed weapon
  • 2022 – Michigan fires volleyball coach Mark Rosen without explanation
  • 2023 – Michigan fires football staffer Chris Partridge for NCAA violations
    • NCAA clears Partridge of wrongdoing,
    • Partridge sues athletic director Warde Manuel
  • 2023 – Michigan fired co-offensive coordinator Matt Weiss
    • Weiss indicted on federal charges for cyberstalking and hacking
  • 2023 – Football scout Glenn Schembechler resigns for liking pro-slavery posts
  • 2023 – Michigan fires football staffer Alex Yood over child solicitation scandal
  • 2023 – Juwan Howard gets in altercation with strength coach Jon Sanderson
  • 2023 – Warde Manuel hires Larry Nassar-linked gymnastics consultant Rhonda Faehn
    • Warde Manuel reverses his decision after one day
  • 2023 – Connor Stallions caught stealing signs
  • 2023 – Blake Corum’s LLC ties him to Connor Stallions
  • 2024 – Defensive line coach Greg Scruggs arrested for OWI,
    • Scruggs resigns
  • 2024 – Assistant Director of Player Personnel (and legendary quarterback) Denard Robinson arrested for OWI
  • 2024 – Michigan instigates brawl with Michigan State
  • 2024 – Graduate assistant LaTroy Lewis accused of sexual assault
    • Warde Manuel allegedly ignores Title IX requirements
  • 2025 – Michigan fires Sherrone Moore
    • Moore arrested

Some of the incidents are worse than others. I might’ve even missed a few.

Manuel got hired in January of 2016. The above list took place entirely under his watch. Thus, according to multiple reports, the athletic director’s future at the university is currently up in the air.

The University of Michigan Board of Regents will meet on Thursday. Issues related to the athletic department, and the Jenner & Block investigation, were an expected topic. Manuel’s employment could be at risk of termination. We’ll see.

The agenda does not mention anything in specific. Weird.

Local podcast host ‘Michigan Man Ray’ was the first to report on the uncertainty.

Jim Comparoni of 247 Sports later confirmed the buyout conversations. Michigan State pundit Justin Spiro (who is widely considered a “controversial” or “questionable” source of information) then claimed that Manuel is out.

Ann Arbor-based journalist and author John U. Bacon claims the university and Manuel are prepared to part ways.

Again, we’ll see. Manuel released the following statement to Ross Dellenger on Monday morning:

“The president and I have had several great conversations over the past couple of days. There are no plans for me not to continue to be the athletic director for the near future.”

He is not going to step down. It seems like Manuel is going down with the ship— if the ship does indeed go down, that is.

What happens if Michigan fires its athletic director?

There are a few potential outcomes in this situation. Michigan could choose to keep Warde Manuel as athletic director. Michigan could choose to fire Warde Manuel as athletic director. Or the two parties could mutually agree to part ways.

If the Wolverines decide to let him go, they will owe him a lot of money.

Manuel signed a five-year contract extension in 2024 at more than $2 million a year. It will run through June of 2030. His agreement with the university includes a specific buyout provision. Michigan would have to pay a severance of 36 months…

… unless the school and the athletic director reach a settlement agreement!

If the university decides to cut ties with Manuel, it would be forced to pay him ~$6 million. However, if the university decides to cut ties with Manuel based on the findings of the investigation, that likely means that Jenner & Block found him guilty of wrongdoing. If that is the case, I would assume Manuel would agree to settle.

His statement on Monday creates some confusion. Is he angling for the full buyout? Is he positioning himself for settlement negotiations? Or does he really believe that he is going to get to keep his job?

Now we wait…