Why Jim Harbaugh Called Out the NFL, Broncos After Failed Daiyan Henley Trade

In this story:
A number of trades were made before the 2026 NFL trade deadline hit on Tuesday at 4 p.m. ET, but not all of them ended up going through.
First, the Bengals’ trade for Eagles edge rusher Arnold Ebiketie fell through after Cincinnati realized it would have had to give up its third-round compensatory pick in the deal. Then, the Broncos’ trade for Chargers linebacker Daiyan Henley was called off late Wednesday night.
Shortly before the deadline on Tuesday, the Broncos agreed to trade a 2027 fourth- and 2028 fifth-round pick to the Chargers for Henley. Henley, 26, is in the final year of his rookie deal and the Chargers opted to trade him as they looked to accumulate more draft capital amid an 0–8 start. It wasn’t until a day after the deadline that both teams announced the deal would not go through, and Henley would remain a Charger.
The Broncos wrote in a statement late on Wednesday, “The proposed trade involving Chargers linebacker Daiyan Henley will not be finalized. We have great respect for Daiyan as a player and person, and we wish him all the best moving forward.”
Denver did not give a reason for canceling the trade, but Chargers coach Jim Harbaugh was not pleased with the outcome.
“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 told reporters. “In my opinion, it’s one of those loopholes that the league should really look into because it sets a bad precedent, continues to set a bad precedent.”
HC Jim Harbaugh says Denver failed Henley's physical to back out.
— Alex Insdorf (@alexinsdorf99) November 12, 2026
"The Broncos based a pass/fail on a medical grade on whether we would take less compensation."
Harbaugh says the Broncos would pass Henley's physical if the picks were downgraded from the agreed upon 4th + 5th. pic.twitter.com/xwoVCILJyl
“It shouldn’t be [a loophole], but apparently it is,” Harbaugh said when asked about the Broncos allegedly trying to renegotiate terms after the deadline had passed. “That’s why it’s a loophole and teams should not have the ability to do that. I mean, it’s a medical grade. It’s a pass-fail for a medical grade. 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 him for a fourth and a fill in the blank. I don’t know what to call that. That’s what it is.”
This marks the second time this year that a trade has been called off due to an issue with the physical. Back in March, the Ravens canceled their trade for Maxx Crosby due to a failed physical. Henley has recently been on the injury report with a shoulder injury, but has not missed a game yet this season.
After Harbaugh’s comments, Parker Gabriel of The Denver Post reported that “The information the Chargers provided before the trade did not match what Denver found during the physical” and that the NFL approved of the Broncos revisiting the compensation package. Harbaugh clearly was not a fan of this “loophole.”
In the meantime, Harbaugh said the Chargers have welcomed back Henley with “open arms.”
“What that put Daiyan through, you know, kind of the ringer for the last couple days. Yeah, it’s emotional. It’s painful,” Harbaugh said, per The Athletic. “And all that’s considered, and should be considered by the league when they look into this loophole.”

Eva Geitheim is an NFL writer at Sports Illustrated. Prior to joining SI in December 2024, she wrote for Newsweek, Gymnastics Now and Dodgers Nation. A Bay Area native, she has a bachelor’s in communications from UCLA. When not writing, she can be found baking or rewatching Gilmore Girls.
Follow EGeitheim