I have no inside info here, BUT...
- After the year he had, Denard would have his choice of programs.
- He is obviously a spread guy, and Harbaugh is obviously not.
- He has a redshirt year to burn if he transfers, so it wouldn't cost him any playing time.
Logic dictates that Denard would leave. The only reason he would stay is because he loves Michigan that much... but after seeing the fanbase take a dump on his coach (warranted or not), I imagine that good will is fading quickly.