So this happened (HT: Spartalytical). As for Michigan, I don't think the NCAA will dole out any punishment. What will most likely happen is that Michigan will self-impose some sanctions, maybe cut a couple scholarships, and the NCAA won't see the need to look into those violations any further. However, this hints to a growing schism (man I've heard that word a lot in the past couple days. Thanks Brett Favre!) in the locker room, and if you don't think losing a locker room can affect a program, has a sweet deal for you on a 2001 Toyota Camry.
As for Michigan State, the Free Press published an article with quotes from Javon Ringer and Otis Wiley stating that everything was by the book. The most telling quote though is one from recent transfer David Duran:
Did Duran ever feel seven-on-sevens were mandatory?
"In no way," said Duran, a sophomore from Marietta, Ga. "It was the QBs calling us and saying, ‘If you want to come out, we’ll be throwing at this time.’ "
This article was most likely published to contrast the recent goings-on at Michigan, and succeeds in providing that contrast. I wonder why no current Spartan players were contacted, but that thought is nothing that'll cause me to lose sleep.
In the grand scheme of things, this alleged rules violation will be viewed in wins and losses. If Michigan goes 8-4 this season and avoids the NCAA's hammer (which will most likely happen), the incident will be seen as a mere speed bump. However, if the Wolverines are under .500 this season, the incident could be seen as the tipping point that led to Rich Rodriguez's dismissal.