Broncos backed out of trade for Chargers' Henley over surprising issue in physical, AP source says

ENGLEWOOD, Colo. (AP) — The Denver Broncos backed out of their proposed trade with the Los Angeles Chargers for inside linebacker Daiyan Henley, a decision that has stirred discussion over whether the NFL should consider changing its rule on teams acquiring injured players.

A person with knowledge of the situation told The Associated Press that the Broncos were surprised by something that showed up in Henley’s physical that the Chargers hadn’t mentioned, and — after consulting with medical personnel inside and outside their team headquarters — informed the league and the Chargers that they wanted to discuss changing compensation terms, which is standard in such cases.

The person, who spoke on condition of anonymity because the Broncos haven’t discussed the cancellation of the trade, said the teams exchanged proposals to amend terms of the deal but couldn’t come to an agreement.

Chargers general manager Joe Hortiz, however, said Thursday that the Broncos were fully aware Henley was dealing with an injury upon agreeing to send Los Angeles a 2027 fourth-round draft pick and a 2028 fifth-rounder on Monday, a day ahead of the trade deadline. Hortiz said the Broncos sought to change the terms of deal afterward, and used Henley's failure to pass the physical as a reason to back out.

“It’s a really unfortunate thing,” Hortiz said. “It gives you an opportunity to make a trade at the deadline and then try to change the terms that you already agreed upon and with no recourse.”

Chargers coach Jim Harbaugh said the Broncos used a loophole in the rules that “continues to set a bad precedent.”

Hortiz has discussed the situation with the NFL and said he expects teams to propose closing the loophole at league meetings in March.

The Chargers did not disclose Henley's injury, though he was listed as having a knee issue as recently as Week 6. The fourth-year player has 51 tackles, two fumble recoveries, a forced fumble and an interception in eight games this season.

“We have great respect for Daiyan as a player and person, and we wish him all the best moving forward,” the Broncos said in a statement.

The Broncos (7-2) have a bye this week. The winless Chargers (0-8) play at Baltimore on Monday night.

Henley, a third-round selection out of Washington State in 2023, became a starter in his second season. In 41 games over the last three years, Henley has 301 tackles, five sacks, four interceptions, two fumble recoveries and 15 passes defensed.

The Chargers, in a cheeky social media post , recognized the trade cancellation with a graphic that read, “Welcome back, Daiyan.” The words above a picture of Henley that read, “Thank you,” were crossed out from their original message on Tuesday.

Hortiz said he met with Henley and apologized for what the player went through.

“It’s a challenging thing, but the reality of it is we love him,” Hortiz said. “That’s why we wanted such a compensation package to consider moving him.”

AP Sports Writer John Wawrow contributed to this report.

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