The college was penalized because some players were given free rent, food and in some cases, spending money.
In California, community colleges are prohibited from granting athletic scholarships. The California Community College Athletic Association carried out the sanctions after an investigation found that former basketball coach David Granucci and his family had taken part in the wrongdoing.
Years of wins for the team, and a championship title were stripped from the college's record.
The college also faces a two-year probation period, and will not be eligible for the playoffs in 2017.
Granucci resigned last fall, and has since said he was trying to do what he thought was best for the players, and the team.
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