A trade that appeared set to send Los Angeles Chargers linebacker Daiyan Henley to the Denver Broncos fell apart Wednesday night after a physical raised concerns about his knee. The collapse left Henley back with the Chargers and prompted head coach Jim Harbaugh to question how Denver handled the medical review.
Los Angeles had agreed to trade Henley to Denver for a 2027 fourth-round pick and a 2028 fifth-round pick, with the deal contingent on a physical. Henley traveled to the Broncos’ facility for the examination on Wednesday. Later that night, Denver informed the Chargers that the trade would not be finalized.
The specific medical concern was initially unclear. ESPN reported that Henley’s knee was a concern for Denver, while Pro Football Talk reported that the Broncos found arthritis in the knee.
At a Thursday press conference, Harbaugh said the Broncos tied their pass-or-fail medical decision to the compensation involved in the trade. He argued that the team’s approach raised questions about how physicals can be used in trade negotiations.
“The Broncos based a pass-fail on a medical grade based on whether we would take less compensation,” Harbaugh said. “And we wouldn’t, and we didn’t. And in my opinion, it’s one of those loopholes that the league should really look into because it sets a bad precedent and continues to set a bad precedent.”
Harbaugh said Denver had indicated that it would not pass Henley for the originally agreed-upon fourth- and fifth-round picks. He also said the Broncos would pass the linebacker if the Chargers accepted a different version of the compensation.
According to reports, Denver presented two revised options after Henley’s physical: a fourth-round pick and a seventh-round pick, or a fourth-round pick paired with a pick swap. The Chargers rejected both proposals.
General manager Joe Hortiz supported Harbaugh’s account of the discussions. He did not confirm a knee problem, but described receiving a call from Denver after the physical and said the Broncos wanted to change the terms.
“We came to terms on it, made the agreement, they called us up and were asking us to amend the trade based on the physical,” Hortiz said.
Hortiz also acknowledged the difficulty of the situation for Henley, who returned to Los Angeles late Wednesday night. The linebacker had been preparing to join a division rival before the deal abruptly ended.
Harbaugh questioned why Henley would be considered able to play for the Chargers but not suitable for the Broncos. Henley has started all eight games this season and leads Los Angeles with 51 tackles. He also recorded well over 100 total tackles in each of the previous two seasons.
The failed trade comes at a difficult point for both teams, though their situations are sharply different. The Chargers are 0-8 and the only winless team in the league, while Denver is 7-2. Henley had the opportunity to join a winning team, but he remains in Los Angeles. He is also in the final year of his rookie contract.
This is not the first reported trade to be stopped after a physical. Earlier in the year, the Baltimore Ravens called off a deal for Maxx Crosby with the Las Vegas Raiders after a failed physical. Crosby stayed with Las Vegas.
The collapse drew criticism from fans, with some blaming the Chargers and suggesting the team should have disclosed the reported arthritis before agreeing to the trade. Others accused Los Angeles of trying to conceal a health issue. Those were fan reactions, not confirmed findings about what the Chargers knew or disclosed.
Some fans also criticized Harbaugh personally, referring to his association with Michigan during the 2023 sign-stealing scandal. Their comments focused on his criticism of what he described as a loophole in the NFL’s trade process.
For now, the trade remains uncompleted, Henley is back with the Chargers, and the Broncos have said only that the deal will not be finalized. Harbaugh has called on the league to examine the process, but it remains uncertain whether the NFL will review the matter.
