An 8-5 for Sherrone Moore’s debut as head coach in Ann Arbor. Some call it solid, others underwhelming. Either way, Michigan might be rolling up their sleeves for a big shake-up in 2025 with their new recruits. However, a major financial problem could be popping up regarding the $20M payout under the NCAA’s new settlement rule. While these changes are primed to help players, they could make things tricky for the Wolverines. 

Under the new settlement rule, college athletes now get a cut of athletic revenue. Players will be eligible for benefits like mental health coverage, medical coverage, life enhancement skills, and more. Schools have to allocate 22% of Power 4 conference revenue to their players. For Michigan, that’s about $20M. The concern is that the Wolverines already spent a huge chunk of money on NIL deals, particularly with Bryce Underwood and his $12M offer. Could this mean a smaller pool of funds for other recruits?

Even with these financial hurdles, some analysts are confident that Michigan is going to come through this setback. JD Pickell held no second thoughts when he listed Michigan as the “number six team that is set up for success over the course of the next three years.” In a new On3 episode, he boldly stated, “NIL is something that is going to be a weapon for them in the future. Like Steve Wiltfong said it best in a National Signing Day Show, they are going to have a loaded gun when it comes to NIL. That’s wild. That’s extremely wild.” Sherrone Moore made some changes, and the results have begun to show.

The key change is the hiring of Sean Magee as the general manager. With him in charge, Michigan has taken a much more aggressive approach to NIL recruiting. The Wolverines secured its best recruiting class since 2017 by rounding up the top 6 class in the 2025 cycle with blue-chip acquisitions like Underwood, Andrew Babalola, and Shamari Earls. And these wins are part of their leveled-up NIL game. Earlier in February, On3 recruiting expert Steve Wiltfong delivered a bright outlook for Michigan in 2025. 

“They are not going to lose on the NIL front anymore,” Wiltfong observed. “They are going to have a loaded gun when they go into these blue-chip battles.” While he called the Underwood flip a whole new level of recruitment, he added, “But a Nate Marshall, flipping him from Auburn down the stretch, getting Ty Haywood in the fold at the end of the cycle. And then when you flip Shamari Earls and Jordan Young. These are the type of recruitments that we haven’t seen Michigan win.” With that No. 41 ranking for their 2026 class and that huge rivalry win over Ohio State, Michigan’s recruiting is straight-up unstoppable. They’re also pulling in elite talent with NIL, no doubt, but can they keep them? 

Can Sherrone Moore lock in the recruits in Michigan?

The multi-million dollar NIL deal for Bryce Underwood could be the root problem for Sherrone Moore. During a live stream, David Pollack pointed out how the $20M spending cap by the NCAA settlement rule could hamper Michigan. “They spent over 12 million dollars to get him, which is crazy,” Pollack said. “But it’s also something that will never happen again. Because as of July 1st, you’ll have a $20 million dollar cap. So you’ll have a budget, actually, you have to operate under, which will be interesting.” 

The biggest risk for Sherrone Moore is losing players. If elite recruits don’t get the deal they expect, they could look elsewhere for better offers. We’ve already seen situations like Jaden Rashada’s messy recruitment with Florida and Matthew Sluka’s transfer from UNLV. If Michigan can’t balance its NIL funds properly, there’s a danger of a mass exodus. 

For Sherrone Moore, the biggest challenge will be keeping the locker room united while managing NIL limitations. If he can pull it off, Michigan will stay in the national championship conversation. If not, the Wolverines could face some serious internal issues.