Los Angeles Chargers head coach Jim Harbaugh told reporters Thursday that the Daiyan Henley trade fell through after the deadline because the Denver Broncos used a “loophole” to base the linebacker’s physical on whether the Chargers would accept less compensation.
Henley was supposed to go to Denver, with LA receiving a 2027 fourth-round pick and a 2028 fifth-round pick in return.
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This trade was agreed to before Tuesday’s 4 p.m. ET deadline, but, like any trade, it was pending a physical. Although the Broncos did not explain why the trade was not finalized in their statement Wednesday evening, NFL Network’s Ian Rapoport reported Thursday morning that Denver considered the “failed” physical exam as the reason for voiding the trade.
Henley was on the Week 9 injury report with a shoulder issue; he ended up playing most of the Chargers’ defensive snaps last Sunday against the Houston Texans. Earlier this season, a knee injury limited him during practice in Week 6. But he hasn’t missed a game during the 2026 campaign.
According to Harbaugh, the calculus behind the abandoned deal was not as simple as a dissidence between two medical teams.
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“Here’s what I know from talking to Joe,” Harbaugh said, via Alex Insdorf of “Guilty As Charged Podcast,” referring to Chargers general manager Joe Hortiz.
“The Broncos based their success or failure on a medical note, whether we would accept less compensation, and we wouldn’t, and we didn’t. And in my opinion, it’s one of those loopholes that the league should really look at because it sets a bad precedent, continues to set a bad precedent.”
Harbaugh, now in his seventh season as an NFL head coach, was also asked Thursday whether teams were allowed to renegotiate terms pending a medical after the trade deadline.
“It shouldn’t be the case, but apparently it is,” Harbaugh said. “That’s why it’s a loophole, and teams shouldn’t have the option to do it.
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“I mean, it’s a medical grade. It’s a pass-fail for a medical grade. And they told us they weren’t going to pass it if it was a fourth and a fifth, which was agreed upon. They wouldn’t pass it for that. They would pass it for a fourth and fill the gap.”
When the subsequent reporter asked to confirm that the Broncos attempted to downgrade the second pick in the deal — the 2028 fifth-rounder — Harbaugh responded, “Correct.”
Denver reportedly obtained permission to review the terms of the trade with Los Angeles after consulting with the NFL on Wednesday. The Broncos, according to a report Thursday by The Athletic, determined that their medical evaluation of Henley, who will soon turn 27, did not match information presented by the Chargers prior to the trade deal.
Even though Denver failed Henley physically due to a knee issue, he still attempted to rework the deal, according to The Athletic.
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Of course, this isn’t the first physical failure to hamper an NFL trade. Famously, this is the reported explanation for why the Baltimore Ravens walked away from their seismic deal for Las Vegas Raiders star pass rusher Maxx Crosby this past offseason. Las Vegas would have acquired two first-round picks if Baltimore had been comfortable with Crosby’s surgically repaired knee.
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