A former employe of one-time advertising executive William B. Tanner says Tanner provided Memphis State University basketball players with money, cars and "pseudo jobs," according to the latest issue of Sports Illustrated.

Asked how much money was involved, Harry Davis, former vice president and controller of the William B. Tanner Co., told the magazine, "How does $1,500 a month sound?"

Tanner, one of the founders of the Golden Tigers booster club, has denied the charges. He began a four-year federal prison term June 10 after pleading guilty to three counts of understating personal income and one mail-fraud count.

The Memphis Commercial Appeal has quoted Jeff Battle, who played at Memphis State during 1978-81, as saying he and other players got money from boosters and coaches.

An unidentified source also told Sports Illustrated that the FBI and the Internal Revenue Service have been looking into the gambling habits and possible debts of Dana Kirk, Memphis State's basketball coach, stemming from his association with the Colonial Country Club.

A federal grand jury began an investigation in April into gambling in the Memphis area, and the Colonial has been one of the places suspected of gambling and bookmaking activities.

A source, described as close to the grand jury, also told the magazine that the panel was looking into the possibility that several games, including the 52-45 loss to Villanova in the Final Four, were fixed . . .

Two of four Duquesne basketball players accused and later cleared of rape were expelled from school for two years and had their athletic scholarships taken away.

Details of any disciplinary action against the other two players were withheld because neither the players nor their attorneys had spoken publicly about their cases, said university spokesman Ken Service.

Expelled were Gregory Harrison, 20, of Lynn, Mass., and Eric Compton, 19, of Long Beach, N.Y. They and Ronald Stevenson, 20, of Pittsburgh were tried and acquitted last month on charges of rape and assault. Identical charges against a fourth member of the team, Emmett Sellers, 20, of Newark, later were dismissed.