James Wiseman has been suspended for 12 games by the NCAA and will return on Jan. 12.
Memphis announced that it will appeal the NCAA's decision based on "case precedent, the circumstances of this case and other mitigating factors."
"We expect a more fair and equitable resolution, and we will exhaust all avenues on James' behalf. James will not compete in this evening's contest," the school said in a statement.
Wiseman's mother accepted $11,500 from Penny Hardaway in the summer of 2017.