Dusty May contract extension: Warde Manuel explains what led to new deal, assurances made

ANN ARBOR – The Michigan Wolverines‘ loss to the rival Michigan State Spartans was a short-term setback for the program, but a major long-term development occurred with the announced agreement between head coach Dusty May and U-M on a new contract.

Terms of the deal were not officially announced as of late Friday night, but athletic director Warde Manuel spoke to the media following the loss to MSU, stating that it is essentially a new five-year deal that runs through 2030. CBS Sports reports a $1 million annual salary raise, a pay bump for the support staff, a $7.5 million buyout and more.

Manuel said the talk about a new deal began before the Indiana job, a rumored destination, came open earlier this month with news of Mike Woodson’s retirement.

“I actually told Dusty when I sat and talked to him about a week ago… I said, first of all, it’s been a great season. I’m proud of you,” Manuel revealed on Friday night. “You’ve accomplished far more than I ever thought you would at this point in your tenure here. But what made me mad is that we started to talk about this before they went to Indiana and all that started. So I want to assure you all that this has nothing to do with a reaction to that.

“This has to do with a decision talking to President [Santa] Ono, in talking through this with my basketball administrator, Doug Gnodtke, that this is what we wanted to do. So it’s a great day, but I just want to assure people this has nothing to do with [the Indiana chatter].”

So why now with a contract already in place? The Michigan athletic director said much of it had to do with surpassed expectations thus far.

 ”Everything about what he said when I met with him 11 months ago and sat down and talked to him [is why Michigan did the deal],” Manuel said. “He’s everything that he talked about wanting to be for this team, his players, this community, the connection to our donors, the connection to the president, fans, students, etc. Everything that he’s done with the program.

“And then you look at the development of the team. In the way they gel together. Look, again, this has nothing to do with one loss or one win or whatever. It is about what he has brought and I just wanted to make sure he knew how much I appreciate it and wanted him to be here and get a new contract.”

The contract terms have been agreed to and are in the process of being officially done via Michigan’s lawyers and May’s representation. The sense of urgency came from wanting to put rumors about his ability to be poached to bed.

 I”t was a great conversation,” Manuel said. “And yeah, it was a negotiation. It was a great conversation with him and his agent to put together a contract. We still need to dot some I’s and cross some T’s, but that should be done very soon. The one thing that Dusty and I have is full trust in each other. And so when we agreed, we both knew that we would both commit to that and make sure, that he moves forward with this program, knowing how much we want him here. That’s what it was about.

“Listen, you know last year and the rumors that were around and where Dusty could have went and what he could have got paid. He got us to a point where I felt that it was time to show him how much we thought of him and he appreciated and obviously committed to being here.”

May originally signed a 5-year deal through April 2029 and currently makes $3.625 million for the 2024-25 season in base salary, one that increases by $100,000 per season through the life of the contract. It’s also supplemented by postseason performance bonuses should he reach different goals and includes retention bonuses of $300,000 that take effect in 2027.

Michigan also paid May a $1,513,000 signing bonus when he was hired in 2024. His buyout was reportedly $5 million and was set to go down by $1 million each year.

But with the new deal, May will be paid more in line with what coaches with his resume should.

 ”I look at it as a new contract. Because there are some things in that contract that you strike through like a signing bonus and stuff like that. And moving expenses… I’m not paying if he moves again in Ann Arbor, that’s on him,” Manuel joked. “But, it’s a new contract it’s five years. I don’t know all the stuff that’s out there, so I can’t speak to exactly what’s out there. Our lawyers have already been talking. It’s gonna be done very soon. There’s not a lot to put in there, change some numbers, move some things around.

“The contract, we haggled over that for a long time. And so I think both his agent and our lawyer will get this done very quickly.”

Michigan’s pact with May also comes with assurances and boosted resources, both with his staff and the NIL war chest.

 ”We talked about his staff. We talked about NIL. We talked about travel. We talked food. We talked about a lot,” Manuel said. “Dusty is not the kind of coach that will pound his fist on the table. He works with us, understands we’re here to serve and, and to take care of these young men along with him.

“And that’s the way it goes with him and I. And so it’s a great relationship. I look forward to him being here and I hope it’s longer than five years. When I hired him I think I said that my vision is that Dusty will lead this program for a long time and I’m glad to to be here to tell y’all he is gonna stay here.”