Gio 125 Stuck in gear and clutch wont engage

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BigCam

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So I bought a 07 Giovanni 125cc dirtbike of a buddy. He told me that it wouldn't go in neutral. That's 5% of the problem haha. I am not much of a mechanic but these bikes seem pretty simple so I am going to start ripping things apart. Before I do that I would appreciate some input as to where to start.

Shifter will not shift up or down. It seems to be completely jammed
When the clutch is pulled in the rear tire is still locked up.
Put the bike on a stand and kicked it over and it runs smooth and sounds good but it is stuck in gear.
Just curious if this sounds like a clutch problem or something to do with the shifter or the gears??
Any help is appreciated.
 
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