( CNN ) -- The Denver Broncos announced Wednesday night they had finalized a trade that sends high-profile quarterback Tim Tebow to the New York Jets . Tebow and a seventh-round pick in the 2012 NFL Draft go the Jets in exchange for picks in the fourth and sixth rounds of the draft . The Broncos said Tuesday that superstar quarterback Peyton Manning , a free agent , would join the team , setting in motion efforts to trade Tebow . But the Broncos-Jets deal did n't come without a hitch . A snag was reported within hours of the Jets ' saying they agreed in principle to the trade . ESPN , quoting a source with the Broncos , reported the hangup was over language in Tebow 's contract . Sources told ESPN that the Jets believed Denver should pay $ 5 million in salary advances to Tebow . The Broncos have already paid $ 1.2 million of the advance , ESPN reported . The Jets have agreed to pay half of the $ 5 million in compensation back to Denver to finish the trade , ESPN reported late Wednesday . Tebow , an outspoken evangelical Christian , became the Broncos ' starting quarterback last year amid great fanfare . He led the team from a 1-4 start to an 8-8 finish in the regular season and their first division title since 2005 . The trade comes less than two weeks after the Jets and quarterback Mark Sanchez agreed on a multiyear contract extension . Jets general manager Mike Tannenbaum said Sanchez will retain his starting quarterback job and Tebow will play in a wildcat-style offense , which uses a quarterback more as a runner . `` It will be up to us to put him in the position to be successful , '' said Tannenbaum . `` We think he 's going to be a player that can help us . He 's a great competitor . He 's gon na help us win . '' A lot of the talk about Tebow , 24 , has centered around his demonstrations of his faith . He wore Bible verses on his eyeblack when he quarterbacked for the Florida Gators . He won the Heisman Trophy in 2007 . Throughout last season in Denver , Tebow 's jersey was flying off the racks and `` Tebowing '' -- the act of getting down on one knee and praying while everyone around you does something else -- became an Internet meme and widely recognized symbol . Tebow quickly became the public face of FRS Co. and Jockey ; for months , it was hard to click on ESPN without hearing his name . Manning , who missed last season because of an injury , was released this year by the Indianapolis Colts , the only team for which he 's played in his 14-year pro career . In the subsequent weeks , the Super Bowl XLI victor -- who has been named the National Football League 's Most Valuable Player a record four times -- has been hotly sought after by several teams . Broncos executive John Elway , in a statement issued Wednesday night , said , `` Tim Tebow deserves an enormous amount of credit for what he accomplished and how he carried himself during his time with the Broncos . From taking over a 1-4 team and leading it to the playoffs to energizing our fans and this community , Tim left an extraordinary mark on this organization . His time in Denver will always hold a special place in Broncos history . '' Jim Daly , president of the Colorado Springs-based evangelical group Focus on the Family , teamed up with Tebow for an anti-abortion Super Bowl ad last year . The spot illustrated how comfortable Tebow is trumpeting his Christian beliefs . `` I think there is going to be this period of mourning for Tim Tebow 's departure , '' Daly said . `` I think that that affection that people have for Tebow goes well beyond Denver and his ability to play football . '' CNN 's Dan Merica and Joseph Miller contributed to this report .
NEW : ` ` He 's a great competitor , '' Jets official says . Manning will have special place in Broncos history , Elway says . Deal earlier hit snag over money , ESPN says . The Broncos signed free agent star quarterback Peyton Manning .