The NCAA has imposed significant penalties on the University of Michigan's football program due to a sign-stealing scandal that has persisted for nearly two years. The organization announced a multimillion-dollar fine and suspended head coach Sherrone Moore for an additional game on Friday.

The controversy centers around Connor Stalions, a former Michigan staffer, who allegedly orchestrated a scheme involving a network of associates known as the "KGB." This group attended games of future opponents to record their sidelines and capture play-calling signals. The NCAA reported discovering 56 instances of off-campus, in-person scouting of 13 future regular-season opponents over 52 games from 2021 to 2023. Such scouting is prohibited by NCAA rules, which also ban the use of electronic devices to record signals from other teams.

Stalions is accused of leading this operation, assembling a team of scouts to gather footage of signal callers on the sidelines of upcoming opponents. The NCAA stated that he would analyze these signals, providing Michigan with a competitive edge. However, the full extent of the operation remains unclear, as Stalions and others involved have reportedly destroyed or withheld evidence. Stalions, a Navy graduate, was suspended by the university and later resigned. He claimed to have knowledge of nearly every signal used by opponents in seven games over two seasons.

The NCAA's penalties include show-cause orders for several individuals involved. A show-cause order effectively bars a person from participating in college athletics unless a prospective employer can demonstrate a compelling reason to hire them. Former head coach Jim Harbaugh received the longest show-cause order, lasting 10 years after his current four-year order ends on August 7, 2028. Denard Robinson, a former assistant director of player personnel, faces a three-year ban, while Stalions is banned for eight years. Harbaugh, who previously played quarterback for Michigan, is now in his second year as head coach of the NFL's Los Angeles Chargers.

Financially, Michigan is facing penalties exceeding $20 million. This includes a $50,000 fine, a 10% reduction in the football program's budget, a similar cut to scholarships for the 2025-2026 academic year, and a fine equivalent to the anticipated loss of postseason revenue for 2025 and 2026. Despite these penalties, Michigan's financial resources remain substantial. The university reported expected revenues and expenses of $266.3 million for the upcoming fiscal year.

Coach Moore had already been given a self-imposed two-game suspension, which he will serve this season. The NCAA has added a one-game suspension that Moore will serve during the opening game of the next season. He received a two-year show-cause order but will be allowed to continue his coaching duties and related activities.