Mayo had fallen out of favor in Memphis and a deal was clearly going to happen.
But according to sources, Grizzlies owner Michael Heisley backed out of the agreement, which caused the transaction to miss the 3 P.M. Eastern Trade Deadline.
Mayo has been averaging 12.1 points, 1.9 assists and 2.5 rebounds per game in only 28 minutes per game off the bench.
The previous two seasons, he had been averaging 38 minutes and 18 points per game.
Considering what the Pacers gave up for the former No. 3 overall pick in the 2008 NBA Draft, the trade would have been a steal.
It's too bad for the Pacers who have been playing exceptionally well under the interim coach.
A lineup which included star Danny Granger, Darren Collison, and OJ Mayo would be a contending lineup for the future.
Heisley just commented, "Indiana was not able to get it all together"