Well, they're losing their starting QB, but have several good replacement options. They're also losing a couple veteran LBs. However, they're returning 8 starters on offense and 7 on defense and have a solid recruiting class.
Their non-conference schedule is a joke, but they have a pretty daunting road schedule with games at MSU, Iowa, and tOSU.
Given that MSU is in a rebuilding year, and I give them the nod over Iowa, it's not unreasonable to project Michigan as 11-1 next year, falling just short of the B1G title game in a heartbreaking loss at The Horseshoe. Still, they'll settle for a Rose Bowl after tOSU makes it to the playoffs, edge USC in a nail-biter, and finish the season in the top 10.