Los Angeles Chargers coach Jim Harbaugh voiced frustration with the Denver Broncos on Thursday over a collapsed trade involving linebacker Daiyan Henley, arguing the division rival used a physical as leverage to seek better terms after a deal had already been struck.
Ahead of the NFL trade deadline on Tuesday, the Chargers had agreed to send Henley to Denver in exchange for a 2027 fourth-round pick and a 2028 fifth-round pick. When the Broncos announced the trade Tuesday, they noted it was pending a physical. Late Wednesday night, Denver said on social media that the trade would not be finalized. Neither club disclosed an official reason, but sources told ESPN's Jeff Legwold and Adam Schefter that the Broncos discovered an issue with one of Henley's knees during his physical on Wednesday.
"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. "And in my opinion it's one of those loopholes that the league should really look into because it sets a bad precedent and it continues to set a bad precedent."
Chargers general manager Joe Hortiz confirmed Thursday that Denver asked to amend the agreement after the physical, while declining to say whether a knee issue triggered the breakdown. "We came to terms on it, made the agreement, they called us up and were asking us to amend the trade based on the physical," Hortiz said. "And in our minds, the physical's a binary thing. It's pass or fail. And they wanted the player still. They wanted to change the terms. They used it, and we weren't going to do it."
Hortiz said the Broncos were told about Henley's medical situation before the deal was made. "Absolutely," he said when asked whether he had shared any health concerns. "'Hey, he's dealing with this, but he's expected to practice and play for us this week.' And I think that was their plan. They certainly wanted him still."
Harbaugh argued the medical evaluation should never function as a bargaining chip. "It's a medical grade. It's a pass-fail for a medical grade and they told us they weren't going to pass him if it was a fourth and a fifth, which was agreed upon. And they would not pass him for that. They would pass them for a fourth and a fill-in-the-blank," he said. Hortiz added that he agreed with Harbaugh "100 percent," said other general managers had called him about the situation, and revealed he has been in touch with the NFL. He said he would not be surprised to see proposals about closing the loophole from teams at the league's annual meeting in March.
Henley has appeared on the Chargers' injury report twice this season. A knee issue limited him in practice during Week 6, yet he started against the Kansas City Chiefs and played 51 defensive snaps with four tackles. Last week he was listed with a shoulder problem but still started in Sunday's 44-22 loss to the Houston Texans, logging 57 defensive snaps, 10 tackles and an interception. Harbaugh said he found it confusing that Henley was considered healthy enough to play for the Chargers but not for Denver.
Hortiz acknowledged the awkward situation created for Henley, saying he spoke with the linebacker Thursday and apologized for what he went through. "It's a challenging thing, but the reality of it is we love him. We did. That's why we wanted such a compensation package to consider moving him," Hortiz said. Henley was uncertain to participate in Thursday's practice but is expected to play when the Chargers face the Baltimore Ravens on Monday night.
A third-round pick in the 2023 draft, Henley has started all eight games in the Bolts' winless season, leading the team with 51 tackles and two fumble recoveries along with a forced fumble. He is in the final season of a four-year, $5.4 million rookie contract.
