Jim Harbaugh Blasts Broncos Over Daiyan Henley Trade Loophole

“It’s one of those loopholes that the league should really look into because it sets a bad precedent,” said Los Angeles Chargers head coach Jim Harbaugh on Thursday.

The Chargers coach addressed the collapse of a trade for linebacker Daiyan Henley, which fell through after the Tuesday deadline when the Denver Broncos reportedly used a medical evaluation to attempt to renegotiate the agreed-upon terms.

The deal was intended to send Henley to Denver in exchange for a 2027 fourth-round pick and a 2028 fifth-round pick. While the exchange was agreed upon before the 4 p.m. ET deadline, the transaction remained pending a physical.

The Broncos did not provide a specific rationale in a Wednesday night statement regarding why the transaction was not finalized, but NFL Network’s Ian Rapoport reported Thursday morning that Denver viewed a failed physical as the reason for nixing the trade.

Harbaugh, speaking via Alex Insdorf of the “Guilty As Charged Podcast,” suggested the disagreement went beyond a simple difference of opinion between medical staffs. He alleged the Broncos used the medical grade as leverage to seek lower compensation from the Chargers.

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— Post by @Broncos on X

“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 said.

“They would not pass him for that. They would pass him for a fourth and a fill in the blank,” Harbaugh added, confirming that the Broncos attempted to downgrade the 2028 fifth-round pick originally included in the deal.

According to a report from The Athletic, Denver was granted permission by the NFL to revisit the terms of the trade with Los Angeles after consulting with the league on Wednesday. The report stated that Denver determined their medical evaluation of the 27-year-old Henley did not align with information provided by the Chargers prior to the agreement.

The medical tension centered on a knee issue, though Henley had not missed a game during the 2026 campaign. He was on the Week 9 injury report with a shoulder issue but played most of the defensive snaps against the Houston Texans last Sunday.

When asked if teams are permitted to renegotiate terms pending a physical after the trading deadline has passed, Harbaugh responded, “It shouldn’t be, but apparently it is.”

The situation involving Henley is not the first instance where a medical evaluation has derailed a high-profile NFL transaction. The league has seen similar friction when teams attempt to walk away from deals based on post-agreement medical findings.

From @GMFB: The Daiyan Henley trade to the #Broncos is off because of what will be termed as a failed physical; Plus the #Giants get healthy for tonight’s game. pic.twitter.com/hNBFK2ZV2V

— Post by @RapSheet on X

A notable recent example occurred during the previous offseason regarding a major deal for Maxx Crosby. The Baltimore Ravens reportedly backed out of a significant trade for the Las Vegas Raiders pass rusher because they were uncomfortable with his surgically repaired knee.

The implications of this “loophole” extend to how front offices manage risk and asset valuation during the high-pressure window of the trade deadline. If teams can use the physical process to revisit previously settled terms, the stability of trade agreements becomes subject to medical interpretation and late-stage negotiation.

“That’s why it’s a loophole, and teams should not have the ability to do that,” Harbaugh said.