Report: Mother of Kansas forward has ties to firm specializing in ‘loans to potential high draft picks’

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Saturday afternoon Kansas freshman forward Cliff Alexander missed his third straight game due to an ongoing investigation into his eligibility by the NCAA. According to a Yahoo Sports report earlier this week, the NCAA is looking into the possibility that a family member may have received impermissible benefits.

Saturday afternoon Yahoo Sports reported that Alexander’s mother can be tied to a company that specializes in drafting loans to “potential high draft picks in the NBA and NFL.” Those loans are extended to athletes in their families after the prospect has declared himself eligible for the draft, not before.

According to the report a Universal Commercial Code (UCC) was secured by Ludus Capital, a financial company based in Florida, last August. According to USLegal.com, a UCC “is applicable in sales, leases, negotiable instruments, bank deposits, funds transfers, letters of credit, bulk transfers and bulk sales, warehouse receipts, bills of lading and other documents of title, investment securities, and secured transactions of commercial transactions.”

The question is how this would apply to a situation in which a family member could possibly receive a loan with the player’s future NBA earnings being used to repay the loan in the future. The filing was made in Alexander’s home state of Illinois. Also of note in the report is that the family met with various agents in August, and the meetings are not against NCAA rules as noted in the most recent Yahoo Sports report.

Alexander’s family took meetings with NBA agents during August, sources said. Discussions with agents for the purpose of gaining information on a player’s market value do not violate NCAA rules, but entering into a written or verbal agreement and receiving compensation is a violation.

Complicating matters in regards to when (or if) Alexander will be able to return to the floor is the fact that the family has retained legal counsel. The NCAA has yet to interview the freshman, and that is something that has to take place before there’s any conversation about possible reinstatement.

With Perry Ellis (sprained knee) sidelined and Brannen Greene (who was suspended for Saturday’s game) and Wayne Selden Jr. (ankle) also banged up, Kansas has personnel issues to deal with during the most important stretch of the season. With that being the case, Alexander’s situation clearly doesn’t help matters.