CHARLESTON, W.Va. -- Rich Rodriguez's first $2.5 million is in to West Virginia University as part of the $4 million settlement they reached last month.

The University of Michigan wired the money to WVU late Thursday afternoon, said Tom Flaherty, WVU's lead attorney in the matter.

"It's a done deal," Flaherty said. "The money was transferred by Michigan at 4:41 p.m. Eastern time."

The $2.5 million payment was due by the end of July as part of a $4 million settlement reached July 8 over the former WVU football coach's breach of contract.

After months of legal wrangling, Rodriguez agreed to pay WVU the entire $4 million liquidated damages provision in his contract. He broke that clause when he resigned in December to coach at Michigan.

The University of Michigan paid the installment Thursday, but Rodriguez is scheduled to pay the remaining $1.5 million. Under the settlement terms, he's supposed to start the first of three annual $500,000 payments in January 2010.

Flaherty said he couldn't speak for university officials as to what they plan to do with the settlement money.

WVU general counsel Alex Macia, who did not return a phone call on Thursday, previously has said the $2.5 million initially would go into the university's general fund.

On Thursday, associate athletic director Mike Parsons said the decision ultimately lies with interim President Peter Magrath, but that he's hoping the cash makes its way to the athletic department.

CHARLESTON, W.Va. -- Rich Rodriguez's first $2.5 million is in to West Virginia University as part of the $4 million settlement they reached last month.

The University of Michigan wired the money to WVU late Thursday afternoon, said Tom Flaherty, WVU's lead attorney in the matter.

"It's a done deal," Flaherty said. "The money was transferred by Michigan at 4:41 p.m. Eastern time."

The $2.5 million payment was due by the end of July as part of a $4 million settlement reached July 8 over the former WVU football coach's breach of contract.

After months of legal wrangling, Rodriguez agreed to pay WVU the entire $4 million liquidated damages provision in his contract. He broke that clause when he resigned in December to coach at Michigan.

The University of Michigan paid the installment Thursday, but Rodriguez is scheduled to pay the remaining $1.5 million. Under the settlement terms, he's supposed to start the first of three annual $500,000 payments in January 2010.

Flaherty said he couldn't speak for university officials as to what they plan to do with the settlement money.

WVU general counsel Alex Macia, who did not return a phone call on Thursday, previously has said the $2.5 million initially would go into the university's general fund.

On Thursday, associate athletic director Mike Parsons said the decision ultimately lies with interim President Peter Magrath, but that he's hoping the cash makes its way to the athletic department.

"Obviously, the athletic department suffered the damages," Parsons said.

In December, the university's Board of Governors sued Rodriquez in Monongalia County Circuit Court to make him pay his $4 million buyout clause.

When the two parties settled in July, WVU made some concessions.

The school won't get any interest on the amount Rodriguez has already failed to pay. They also won't get attorneys' fees and court costs acquired during the ordeal.

On Thursday, Flaherty said his law firm would deliver its legal bill to WVU either today or early next week.

"I'm sure [WVU] will release that [to the public] immediately," Flaherty said.

When the settlement was reached, Michigan athletic director Bill Martin issued a statement saying UM would use funds from its reserve account for the $2.5 million.

"To help Rich focus on the challenges ahead, we have worked with him to resolve the dispute between him and West Virginia University over the terms of his buyout," Martin said in that statement. "Although he continues to disagree with the validity of the terms, Rich and the rest of us at Michigan felt that it would be best to get this distracting issue behind us."

Sports editor Mitch Vingle contributed to this report. Reach Alison Knezevich at alis...@wvgazette.com or 348-1240.