Jim Harbaugh Urges NFL to Close 'Loophole' After Broncos Nix Daiyan Henley Trade

The Denver Broncos canceled a trade for linebacker Daiyan Henley after a physical, leading Chargers coach Jim Harbaugh to allege the team attempted to renegotiate agreed-upon compensation.

Los Angeles Chargers coach Jim Harbaugh expressed frustration Thursday after the Denver Broncos nixed a trade for linebacker Daiyan Henley. The deal, agreed upon ahead of Tuesday's NFL trade deadline, would have sent Henley to Denver in exchange for a 2027 fourth-round pick and a 2028 fifth-round selection. While the Broncos announced the trade was not finalized late Wednesday night, Harbaugh alleged that Denver attempted to use a medical grade to lower the agreed-upon compensation.

Sources told ESPN that Broncos staff discovered a knee issue during Henley's physical on Wednesday. Harbaugh claimed the Broncos indicated they would only pass the linebacker's medical evaluation if the Chargers accepted different trade terms. Henley previously appeared on the Week 6 injury report with a knee issue but recorded 10 tackles and an interception during last Sunday's 44-22 loss to the Houston Texans, playing 57 defensive snaps.

Harbaugh described the situation as a "loophole" that the league should investigate, arguing that medical grades should be strictly pass-fail rather than a tool for renegotiation. A third-round pick in 2023, Henley has started all eight games this season, leading the winless Chargers with 51 tackles and two fumble recoveries. The linebacker, who is in the final year of a $5.4 million rookie contract, returned to the Chargers late Wednesday, leaving his status for Thursday's practice uncertain as the team prepares for the Baltimore Ravens.