The Tigers were found to have used an ineligible player, unidentified by the NCAA but believed to be Derrick Rose, in their 2007-08 season. As a result Memphis will have 38 wins removed from its record and its NCAA runner-up finish wiped out.
The NCAA Division I committee on Infractions determined in August that a Memphis player didn't take the SAT exam on his own. Memphis appealed the sanctions as excessive but Monday the appeals committee announced it had denied the request.
Memphis Athletic Director R.C. Johnson, in a release, said: "I am extremely disappointed with the findings. However, the ruling has been handed down and we must move forward. The future of Tiger athletics is, indeed, very bright."
The violations occurred when the Tigers were coached by John Calipari, but there were no penalties imposed on the coach.
It was the second time a Final Four appearance for a team led by Calipari had its appearance vacated. He took Massachusetts to the Final Four in 1996 but that was negated when the NCAA ruled that Marcus Camby had taken money from two sports agents.