Haydn "Fats" Thomas instead entered a not guilty plea and his case was continued until mid-November.
Earlier Tuesday, Thomas' attorney told ABC11 that Thomas was ready to take a plea deal on three felony drug charges and one charge of possession of a firearm by a felon. But after a lengthy court session Tuesday, the deal fell through.
Thomas is accused of renting high-end cars to PJ Hairston on numerous occasions over the last year, including an SUV which Hairston and two friends were in when they were arrested at a police checkpoint in Durham on drug charges.
The charges against Hairston were dropped. Thomas has denied renting the vehicles and the NCAA has refused to comment on any possible investigation into improper benefits.
UNC head coach Roy Williams suspended PJ Hairston indefinitely after his summer drug arrest and after Hairston received multiple speeding tickets. Williams has said the NCAA will have a say in how many games Hairston will miss. UNC has also stated previously, it expects a decision on the suspension before the start of the basketball season on Friday, but UNC said today there is no time line for an update or announcement.