Sherrone Moore fired: Michigan buyout and contract details out; bad news for coach

Michigan announced Sherrone Moore's firing after an internal investigation. Here are the details highlighted in the multi-year contract

On December 10, Michigan announced Sherrone Moore's firing after an internal investigation concluded he had engaged in an “inappropriate relationship with a staff member.”

Moore's contract included a built-in buyout option, according to a breakdown published earlier this season by CBS Sports. The buyout was around $16.5 million (including what was already paid for the season) if he was dismissed in the middle of the season without cause.

The previously stated buyout terms are unlikely to be honored because the termination is formally "for cause," or they may be drastically reduced, depending on how the contract's cause provision is worded.

Following the dismissal, reports emphasized that terminating someone for good reason usually nullifies a conventional buyout commitment.

Contract and buyout details

Moore was promoted from interim head coach following the departure of Jim Harbaugh.

Roughly nine months later, the University of Michigan had agreed on a multi-year contract with Sherrone Moore when they officially signed him as head coach in September 2024.

According to a detailed contract breakdown by CBS Sports, Moore’s full contract as head coach at the Michigan Wolverines paid him $5.5 million annually in base salary and additional compensation. There were also additional performance bonuses for winning a conference championship or a national championship.

The contract also included a buyout clause. If Michigan dismissed him without cause during the 2025 season, the school would owe him 75% of the remaining contract value. This worked out to be an estimate of $16.5 million total payout, which includes the portion for 2025 and future years.

If the firing happened after the 2025 season, CBS calculated the payout for the remaining three years at roughly $12.375 million.

However, if the termination is “for cause”, meaning serious misconduct, policy violations or other disqualifying behavior as defined in the contract, the buyout clause likely becomes void, and the university may not be obligated to pay out the full amount.

The contract also included a stipulation that if Moore found another job, any earnings from the new job would offset, i.e. reduce, the amount Michigan owed under the buyout clause.

Given the clause, Moore stands to lose out on the $16.5 million payout.