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The trade that would have sent Los Angeles Chargers linebacker Daiyan Henley to the Denver Broncos has fallen apart due to a failed physical examination. While the Broncos announced the deal would not be finalized without disclosing why, Chargers coach Jim Harbaugh revealed details of the negotiations and called on the NFL to investigate a “loophole” that caused the agreement to collapse.
Trade Demands and Medical Concerns
Although both teams announced the deal before the Nov. 10 trade deadline, it was contingent upon Henley completing a physical examination. According to ESPN, that examination raised concerns within the Broncos’ front office regarding Henley’s knee.
Harbaugh stated that the Broncos used their findings to attempt to negotiate lower trade compensation after the deadline had passed, a practice that is permitted as long as teams do not add new players to the package. The original agreement required Denver to send a 2027 fourth-round pick and a 2028 fifth-round pick to Los Angeles in exchange for Henley.
“The Broncos based a pass/fail on a medical grade based on whether we would take less compensation,” Harbaugh said on Thursday after the deal collapsed. “We wouldn’t, and we didn’t. 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.”
Henley has missed only three games throughout his NFL career, with just two missed in 2023 due to injury. He appeared on the injury report in Week 6 with a knee issue, though he practiced in a limited fashion and played in that week’s game. He was listed on the injury report again last week due to a shoulder problem rather than a knee ailment, and he practiced in full on Thursday and Friday.
Harbaugh Calls for Rule Changes
Harbaugh asserted that teams should not be permitted to renegotiate trade terms after the deadline, regardless of any medical findings during physical examinations.
“That’s why it’s a loophole, and teams should not have the ability to do that,” Harbaugh said. “It’s a medical grade. It’s a pass/fail for a medical trade. They told us they weren’t going to pass him if there was a fourth and a fifth, which was agreed upon. They would not pass him for that. They would pass him for a fourth and a ‘fill in the blank.’ I don’t know what to call that, but that’s what it is.”
As reported by ESPN, Denver remained willing to give up the 2027 fourth-round pick but wanted to reduce the value of the second selection by proposing a counteroffer of a fourth-rounder and a seventh-rounder or a fourth-rounder and a pick swap. The Broncos reportedly still wanted Henley, but at a reduced price.
“Medical grades should be based on pass/fail, what the medical grade is, not being used by an organization to get less compensation for a trade that was agreed upon,” Harbaugh said.
Henley’s Role and Contract Status
The trade would have moved Henley from the winless Chargers to the AFC West leader. Despite the team’s struggles, Henley leads the squad with 51 tackles and two fumble recoveries, alongside two tackles for loss and an interception across his first eight games.
Since entering the starting lineup in 2024, Henley has established himself as a consistent 100-tackle linebacker and remains on pace to reach that milestone again this season. With Alex Singleton and Justin Strnad anchoring the middle of Denver’s defense, Henley would have joined the team as a premier depth option.
Henley is currently in the final year of his rookie contract and will become an unrestricted free agent at the conclusion of the season.
