Denver’s trade-deadline deal for Los Angeles Chargers linebacker Daiyan Henley “will not be finalized,” the Broncos announced on Wednesday night.
Neither team gave an official reason for canceling the transaction but ESPN reported Thursday that a physical exam Wednesday turned up an issue with one of Henley’s knees.
The Broncos attempted to negotiate a different version of the deal, with different draft picks involved, but the two sides could not agree to terms, per ESPN.
The original terms of Tuesday’s trade had Denver sending a fourth-round draft pick in 2027 and a fifth-round selection in 2028 to Los Angeles.
Henley, 26, would have gone from the winless Chargers (0-8) to the AFC West-leading Broncos (7-2). He has 51 tackles with one interception, one forced fumble and two fumble recoveries in eight games (all starts) this season.
Henley was a third-round pick by the Chargers in 2023. The Los Angeles native has 317 tackles with five sacks and four interceptions in 56 career games (41 starts). He is in the final year of his rookie deal and due to become a free agent at the end of the season.