Orioles GM Dan Duquette confirmed to reporters on Friday that the team's contract agreement with closer Grant Balfour will not be completed. An undisclosed issue popped up during his pre-signing physical on Thursday.

Balfour, 35, agreed to a two-year contract worth $15 million earlier this week. It's been reported that a shoulder problem caused the team to walk away from the agreement. Balfour had surgery to repair his labrum and rotator cuff way back in 2005.