The Denver Broncos’ proposed trade for Los Angeles Chargers linebacker Daiyan Henley fell through after Denver raised concerns about his health and sought to reduce the draft compensation.

The Broncos announced late Wednesday that the deal would not be finalized. The teams had agreed Tuesday to send Henley to Denver in exchange for a 2027 fourth-round pick and a 2028 fifth-round pick. Henley will return to the Chargers.

Henley failed his physical in Denver. He appeared on the Chargers’ injury report earlier this season with knee and shoulder injuries.

The Broncos still wanted Henley despite their health concerns, and the teams discussed revised trade options, but they could not agree on new terms.

Daiyan Henley trade to Broncos falls through after medical concerns

Chargers coach Jim Harbaugh said Thursday that Denver wanted to replace the 2028 fifth-round pick with a lesser selection. He criticized the Broncos’ handling of the physical and said the Chargers would not accept less compensation.

“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.

Daiyan Henley trade to Broncos falls through after medical concerns

“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.”

medical issues

Daiyan Henley trade to Broncos falls through after medical concerns

medical issues