What Penn State Fans Can Take Away From the NCAA's Michigan Sign-Stealing Report

The NCAA levied fines and show-cause orders against Michigan for its scouting operation but did not issue a postseason ban. Some Nittany Lions fans might wonder why.

Penn State students make noise seeking to force a false start on the Michigan Wolverines offense during a 2023 game vs. the Penn State Nittany Lions at Beaver Stadium. | Matthew O'Haren-Imagn Images

The NCAA Committee on Infractions announced its long-awaited sanctions in the Michigan sign-stealing case, which dates to before the Wolverines' 2023 national-championship season. The COI said that "overwhelming evidence" existed of Michigan's impermissible scouting scheme and issued what amounts to a $20 million fine, limits on recruiting and an additional one-game suspension for head coach Sherrone Moore in 2026.

But unlike in the Penn State case of 2012, the NCAA did not issue a postseason ban, despite saying such a decision would be appropriate. To some Penn State fans closely following the case, Michigan got off easy. Michigan retains its 2023 CFP title and is eligible to play in future postseasons.

Of course, the Penn State sanctions were part of an entirely different case, time and cultural moment. They also were based on a report, known as the Freeh Report, that Penn State commissioned and whose findings it supported.

Nevertheless, the NCAA's 74-page report detailing Michigan's sign-stealing operation contains some interesting facts for Penn State Nittany Lions fans. Here's a rundown:

Penn State's postseason ban no longer is a punishment tool

Penn State Nittany Lions head coach James Franklin waits to lead his team on the field prior to a 2014 game against the Maryland Terrapins at Beaver Stadium. | Rich Barnes-Imagn Images

Penn State received a four-year postseason ban in 2012, which was lifted after two years, as part of the NCAA sanctions. Today, the idea of a postseason ban is quaint. The COI said so right in the document.

The committee plainly stated that a postseason ban "is required in this case," because of its Level I nature. It added that a multi-year ban "would be appropriate" but chose fines instead. Why?

"The panel determines that a postseason ban would unfairly penalize student-athletes for the actions of coaches and staff who are no longer associated with the Michigan football program. Thus, a more appropriate penalty is an offsetting financial penalty," the COI wrote.

Further, Penn State in 2012 received a roster-changing reduction of 20 scholarships per year, which also were phased out early. Michigan instead was fined 10 percent of its football budget and 10 percent of its football scholarship costs.

"Similarly, the new world of college athletics has shifted from scholarship limits to roster spots," the COI wrote. "The NCAA membership has not yet determined whether roster reductions will replace scholarship reductions as a core penalty, and the panel will not prematurely make that decision on behalf of the membership. Instead, the panel adheres to the percentages contemplated for Level I-Aggravated scholarship reductions, but converts the penalty to the financial equivalent of what would have been scholarship reductions. Like the postseason ban, a more appropriate penalty is an offsetting financial penalty."

To me, this pretty well sums up why Michigan got what the punishment it got and why it didn’t get something else. pic.twitter.com/T0nv2nyyQb

— Ralph D. Russo (@ralphDrussoATH) August 15, 2025

Of course Michigan scouted Penn State

Penn State Nittany Lions head coach James Franklin (left) shakes hands with Michigan Wolverines offensive line coach Sherrone Moore (right) following their 2023 game at Beaver Stadium. | Matthew O'Haren-Imagn Images

Though Penn State isn't mentioned specifically in the document, the implication is clear. Former Michigan staff member Connor Stalions led a scouting operation that obviously included Penn State on its to-do list.

"In total, 56 instances of off-campus, in-person scouting of 13 future regular season opponents occurred across 52 contests," the COI wrote. In 2023, Penn State hosted Michigan at Beaver Stadium, a game for which the Big Ten suspended head coach Jim Harbaugh and that the Wolverines won 24-15.

Stalions, who received an eight-year show-cause order, called his group the "KGB." Yet he also told NCAA investigators that the scouting operation didn't matter much.

"Stalions also criticized the significance of the scouting bylaw in today’s landscape," the COI wrote. "In his NOA response, Stalions referred to the rule as “antiquated” and “obsolete” given the wide availability of game film that can be analyzed permissibly. Further, during the hearing, Stalions repeatedly diminished the advantages of sign stealing and his role on Michigan’s staff. For instance, Stalions said that the number of times a coaching staff member actually used his signal deciphering information was 'closer to never than sometimes.'”

"Culture" still matters

Penn State's perceived football "culture" was the focus of the Freeh Report and a foundation for the NCAA sanctions in 2012. The NCAA remained consistent in deploying that word against Michigan. The word "culture" appears 16 times in the report, notably here regarding Michigan's recruiting violations.

"Lastly, the underlying scouting and recruiting violations demonstrate that Michigan failed to monitor its football program," the COI wrote. "Specifically, and as explained throughout the decision, Michigan’s football program and its compliance office were at odds with one another. Michigan’s executive senior associate AD and chief student development and compliance officer (chief compliance officer) is a well-respected leader in the industry. In many ways, she did everything she could to promote compliance.

"The culture of the football program, however, was more powerful and won the day. The efforts of the chief compliance officer and her staff were not welcomed. Instead, they were rebuked, dismissed and disregarded by the football program. As a result, Michigan failed to create a culture of compliance in the football program."

“One recruiting staff member said in a text exchange that Michigan’s compliance staff are ‘shitty at their jobs and actively working against us from the inside. True scum of the earth.’ ” pic.twitter.com/Xd73yQzmkQ

— Matt Fortuna (@Matt_Fortuna) August 15, 2025

Michigan's sign-stealing operation has had lasting effects at places like Penn State. Franklin referenced this recently with regard to Beaver Stadium's renovation. Penn State is building temporary broadcast booths underneath the temporary bleachers on the stadium's West side but is moving the press box permanently to a converted suite on the East side.

Asked whether his assistant coaches who worked from the press box will move to the East side as well, Franklin made this comment.

"Now it's, where's the best side to be on to see the game and also maybe stop some people from stealing signals?" the Penn State coach said.