Edit: I misread the quote... The report is saying that the league wants the 2012 unprotected first round pick, the three young players AND Gordon. Basically, the league has to decide on either the pick or Gordon or the deals off. Subsequently, neither side wants to budge so the deal is likely off.
Considering that Gordon's an expiring contract as well. He shouldn't be the deal breaker for Los Angeles. But, I can understand why the Clippers would frown at losing their starting shooting guard. Still, you've to decline if you're the Clippers.