An 8-1 start (With a loss to #9 Notre Dame) had propelled Michigan to be ranked at 10th in the polls, before a loss to #14 Purdue followed by a loss to #2 Ohio State at home. This made them fall to 14th position in the polls and they finished as 3rd in the Big Ten Conference.
The Tar Heels had started with a score of 4-0 and were ranked #14 before a loss to Wake Forest started a 1-3-1 middle stretch that ended with victories over Virginia and Duke to make them finish 5th in the Atlantic Coast Conference. This was Michigan's first Gator Bowl appearance. This was North Carolina's third ever Gator Bowl appearance.
Scoring summary
First quarter
No score
Second quarter
Michigan - Virgil, 20-yard field goal
Michigan - Anthony Carter, 53-yard pass from John Wangler (kick failed)
North Carolina - Doug Paschal, 1-yard run (Hayes kick)
Third quarter
North Carolina - Phil Farris 12-yard pass from Matt Kupec (Hayes kick)
Fourth quarter
North Carolina - Hayes 32-yard field goal
Michigan - Anthony Carter 30-yard pass from B. J. Dickey (B.J. Dickey pass failed)