06/08/2011 11:41 am ET Updated Aug 08, 2011

Terrelle Pryor's Former Friend: Ohio State QB Made Thousands By Signing Gear

Hours after Terrelle Pryor announced through his lawyer that he would not return for his senior year at Ohio State, a former friend told ESPN's "Outside The Lines" that he witnessed the star quarterback make thousands of dollars by signing memorabilia.

The former friend said Pryor, who was suspended for the first five games of the 2011 season for accepting improper benefits from the owner of a tattoo parlor, made "anywhere from $20,000 to $40,000" in 2009-10.

He said Pryor was paid $500 to $1,000 each time he signed mini football helmets and other gear for a Columbus businessman and freelance photographer, Dennis Talbott. Talbott twice denied to ESPN that he ever paid Pryor or any other active Buckeye athlete to sign memorabilia. He said last week he has only worked with former players to set up signings.

He went on to say that Pryor received thousands of dollars in free food, drinks, tattoos. He also talked about how the 21-year-old had access to free loaner cars from local dealerships.

Pryor's former friend, who asked not to be identified, said the two had a falling out after the 2009-10 season because of his "arrogant" attitude."

Larry James, Pryor's attorney, denied the allegations.

A day after Jim Tressel resigned as head coach, the NCAA shifted its investigation to Pryor and his cars.

It was revealed late last month that Pryor's driver's license was suspended for failing to produce proof of insurance after getting pulled over. But the quarterback was still seen driving a used Nissan 350Z.

Pryor's lawyer later confirmed that Pryor's driver's license was reinstated and claimed that there is nothing out of the ordinary about his cars.