A difference in medical opinions blew up the Daiyan Henley trade.
The Broncos called off acquiring the Chargers linebacker late Wednesday after Henley did not pass his physical, a source on Thursday told The Denver Gazette.
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The Broncos reached an agreement shortly before Tuesday’s NFL trade deadline to send a 2027 fourth-round pick and a 2028 fifth-round pick to Los Angeles in exchange for Henley. Their decision not to finalize the move one day later came as a surprise.
Henley appeared healthy. He started and played on 87% of all defensive snaps in a Chargers loss to the Texans. Henley led the Chargers with 10 tackles and intercepted Houston quarterback C.J. Stroud. It seemed like a formality when Denver said in a news release it acquired Henley “pending a physical.”
The Broncos decided to move on after his results.
But it’s more complicated.
Denver Broncos running back RJ Harvey, right, is unable to catch a pass while under pressure from Los Angeles Chargers linebacker Daiyan Henley during the first half of an NFL football game, Sunday, Oct. 11, 2026, in Inglewood, Calif. (AP Photo/Gregory Bull)
Denver returned to the negotiating table Wednesday after questions surfaced about Henley’s physical, a source confirmed. The Broncos attempted to keep the deal in place with adjusted draft compensation reflecting their new health concerns. Denver posted a message late Friday on social media that the trade would not be finalized.
Chargers coach Jim Harbaugh took issue with the process during his Thursday news conference with Los Angeles media.
“The Broncos based a pass-fail on a medical grade, based on whether we would take less compensation and we wouldn’t and we didn’t,” Harbaugh told reporters. “In my opinion, it’s one of those loopholes that the league should really look into because it sets a bad precedent, continues to set a bad precedent.”
The Broncos consulted with the NFL on Wednesday, a league source told The Denver Gazette, and were approved to seek revised trade terms after their medical evaluation of Henley. Information provided by the Chargers did not match physical results, the source said. NFL teams do not have complete access to a traded player’s health history until a physical is completed.
The NFL does not prohibit teams from renegotiating trade terms because of health reasons. In 2017, the Seahawks and Texans amended a trade agreement for cornerback Jeremy Lane when he failed his physical. There is also precedent for backing out of a trade entirely.
In March, the Raiders agreed to send defensive end Maxx Crosby to the Ravens in exchange for two first-round picks. Baltimore later rescinded the move due to a failed physical. Crosby was recovering from knee surgery at the time. He returned to play for the Raiders.
Henley appeared on the Chargers’ injury report multiple times this season. He was limited in practice ahead of Week 6 against the Chiefs. Henley played despite being listed as questionable entering the game. He dealt with a shoulder injury entering Week 9 against the Texans. Henley appeared on 87% of all defensive snaps prior to the failed trade.
The Broncos and Chargers were not in agreement about the severity of Henley’s injury. Harbaugh declined to provide specifics Thursday when asked by Los Angeles media. The Broncos are on their bye week, and coach Sean Payton is not scheduled to speak with local reporters until Monday.
Los Angeles Chargers head coach Jim Harbaugh answers questions after an NFL football game against the Houston Texans in Inglewood, Calif., Sunday, Nov. 8, 2026. (Jayne Kamin-Oncea, The Associated Press)
It seems both sides are justified in frustration.
Henley is playing in the final year of his rookie contract and will be a free agent next season. If the Broncos valued him as a long-term answer at linebacker — worth two draft picks and a contract extension — then a troubling medical report with new information changes their player valuation. The Broncos were still committed to Henley but at a new price.
The Chargers had zero leverage in the second round of negotiations. They could either take a lesser deal or no deal at all. Harbaugh also vented about the emotional toll on Henley as he returned to the team facility Thursday.
“What that put Daiyan through … kind of the ringer for the last couple days. Yeah, it’s emotional. It’s painful,” Harbaugh told reporters. “And all that … should be considered by the league when they look into this loophole.”
David Chao, a retired ex-NFL head team doctor, compared the process in a social media post to buying a new home. A trade agreement is like entering escrow, and the physical is like a home inspection. The buyer (Broncos) can submit a lower offer if the inspection reveals problems. The seller (Chargers) can either accept or reject the new offer.
The Broncos move ahead with starting linebackers inside Alex Singleton and Justin Strnad. There is an experience gap in depth behind them, with linebackers Jordan Turner and Karene Reid playing mostly on special teams. Rookie linebacker Red Murdock, a seventh-round pick, is on the practice squad.
Los Angeles Chargers linebacker Daiyan Henley is introduced before an NFL football game against the Houston Texans in Inglewood, Calif., Sunday, Nov. 8, 2026. (Jayne Kamin-Oncea, The Associated Press)
Lack of depth will become a concern if Singleton or Strnad miss any games due to injury. Singleton leads the NFL playing on 100% of defensive snaps this season (647), and Strnad has played on 82% of all defensive snaps (529). Singleton is the NFL’s most targeted linebacker in pass coverage (44) while also leading the league in total tackles (107).
Henley would have provided a third experienced linebacker to join the rotation to especially help in passing situations.
It made sense on paper. It failed to work in reality.
The Broncos (7-2) next host the Raiders on Sunday, Nov. 22, at Empower Field. The Chargers (0-8) face the Ravens on Monday night.