I heard an interview with Prince recently, and they discussed that skit.
Prince said that he actually had Chappelle come over to his house. AND that Charlie Murphy's account was indeed what really happened - even down to serving the pancakes. But it wasn't that Prince and the Revolution were that great at hoops, it's just that Charlie Murphy's crew were just plain bad on the court. LOL
But when Chappelle was hanging out thee, Prince walked in and said to him, "Want some pancakes, b**ch?"
I love Prince. He's always been a bit off, even prescient in figuring out the plot of Terminator 3 while stating his fear that the Internet could become self-aware one day. But I always liked the dude.
The Pancakes I figured had to be real. I mean, like Charlie said, how the hell can you make up something like that?