The Denver Broncos reportedly tried to salvage their trade for Daiyan Henley by changing the draft-pick compensation after his physical, but the Los Angeles Chargers did not agree to a revised deal.
According to ESPN’s Jeff Legwold, with additional reporting from Adam Schefter, Denver identified a concern involving one of Henley’s knees during Wednesday’s examination. The Broncos then offered alternatives to the package the teams had agreed upon Tuesday.
Schefter reported that Los Angeles could have received a fourth-round pick and a seventh-round pick, or a fourth-rounder combined with another exchange of picks. No agreement followed, leaving Henley with the Chargers.
The original terms called for a 2027 fourth-round pick and a 2028 fifth-round pick to go to Los Angeles. Denver’s attempt to change that compensation adds an important detail to the cancellation: the Broncos reportedly still wanted Henley, but the teams no longer agreed on the price.
“The proposed trade involving Chargers linebacker Daiyan Henley will not be finalized,” the Broncos said in a statement.
Denver also expressed respect for Henley and wished him well. The team’s announcement did not identify a medical reason for ending the transaction.
What the canceled Daiyan Henley trade changes
Both teams made the physical a condition of Tuesday’s agreement. With the deal canceled, Denver keeps the two selections it had committed, while Los Angeles retains a two-time team captain instead of adding those picks.
The Broncos had already announced corresponding roster moves, waiving defensive back Sean Fresch Jr. and releasing defensive back Ugo Amadi from the practice squad. Their cancellation statement did not announce reversals of those moves.
Henley had made 41 starts in 56 regular-season appearances for the Chargers since they selected him in the third round of the 2023 draft. In that span, he recorded four interceptions, five sacks and 15 pass breakups.
Denver’s original trade announcement listed him as Los Angeles’ leading tackler through eight games this season, with 51. The Chargers are getting back an established starter, while the Broncos lose a planned addition to their defense.
Failed physical does not establish a recovery timetable
NFL Network’s Ian Rapoport also reported Thursday morning that the cancellation would be classified as a failed physical.
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
— Ian Rapoport (@RapSheet) November 12, 2026
That designation alone does not establish that Henley will miss games. Denver’s statement supplied neither a diagnosis nor a recovery timetable, and the reported effort to revise the trade should not be mistaken for a public medical assessment.
The immediate outcome is a return to Los Angeles for Henley. The question of his availability is separate from the now-settled question of whether this trade will send him to Denver.
