Daiyan Henley Trade: Harbaugh Calls Broncos Move a Loophole

The Daiyan Henley trade is dead. The argument over how it died is just getting started.

Denver agreed on deadline day to send a 2027 fourth-round pick and a 2028 fifth-round pick to the Los Angeles Chargers for the linebacker, pending a physical, the Chargers announced. Late Wednesday, the Broncos said in a statement that the proposed trade “will not be finalized,” SI reported. Henley is back with a winless team, and Jim Harbaugh wants the league to look at the rules.

What each side says happened

The two versions don’t line up.

The Chargers’ side: General manager Joe Hortiz said Denver knew Henley had an injury when it agreed to the deal. He said the Broncos then tried to change the terms and used the failed physical as their way out, the AP reported via NFL.com.

Harbaugh went further. He said Denver offered to pass Henley on the physical if the Chargers took less than the agreed fifth-round pick, per Pro Football Talk. His verdict: “it’s one of those loopholes that the league should really look into.”

The Broncos’ side: Denver hasn’t explained itself in detail. The Denver Post’s Parker Gabriel reported that the information the Chargers shared before the trade didn’t match what Denver’s doctors found. He also reported that the NFL approved Denver revisiting the compensation, according to SI.

How the Daiyan Henley trade fell apart, step by step

• Tuesday, Nov. 10: The two teams agree on the deal before the 4 p.m. ET deadline, pending a physical. It was the same deadline day that sent Kirk Cousins to Minnesota.
• Wednesday: Henley takes his physical in Denver. The Broncos come back wanting to change the compensation.
• Wednesday night: The Chargers refuse. Denver announces the trade won’t be finalized.
• Thursday: NFL Network’s Ian Rapoport reports the failed physical was the official reason. Harbaugh and Hortiz go public with their account.

The Chargers had some fun with it, too. Their social team posted a “Welcome back, Daiyan” graphic, with the “Thank you” from Tuesday’s post crossed out.

Why the “loophole” matters to every team

Every NFL trade is conditional on the player passing a physical. That protects the receiving team from taking on a player who is hurt worse than advertised.

Harbaugh’s complaint is about what happens after the deadline. If a team can call a physical a “fail” and then offer to call it a “pass” for a cheaper price, the trading team has almost no leverage. The deadline has already passed, so it can’t shop the player anywhere else.

It isn’t the first time this year. Back in March, the Ravens called off their trade for Maxx Crosby over a failed physical, SI noted. Two collapsed deals in one year, both over medicals, give Harbaugh’s argument more weight.

The NFL hasn’t said whether it will revisit the rule. If it does, the debate will likely center on who runs the physical and whether teams can change terms after the deadline at all.

What Henley brings, and where he goes from here

Henley, a 2023 third-round pick out of Washington State, became a starter in his second season. He has 51 tackles, two fumble recoveries, a forced fumble and an interception in eight games this year, the AP reported. He was listed with a knee issue as recently as Week 6.

Hortiz made clear there are no hard feelings toward the player. “The reality of it is we love him,” he said.

The fallout:

• Chargers (0-8): They keep Henley and lose the two picks they thought they had banked. They visit Baltimore on Monday Night Football at 8:15 p.m. ET on ESPN.
• Broncos (7-2): First place in the AFC West, on their bye this week. They host the Raiders and rookie QB Fernando Mendoza on Nov. 22 and will lean on Alex Singleton and Justin Strnad at inside linebacker.

Denver gets to rest. Los Angeles gets a short week with a linebacker it tried to trade. Both teams are division rivals, and they’ll see each other again before this is over.

For every Week 10 kickoff and channel, check our NFL Week 10 schedule.