The Denver Broncos backed out of their agreed trade for Los Angeles Chargers linebacker Daiyan Henley after they spotted an "issue" with his knee during the defender's physical examination.

Despite that "issue," the Broncos still wanted to trade for Henley and proposed sending fourth- and seventh-round draft picks to the Chargers instead of the originally agreed-upon fourth- and fifth-round picks, according to ESPN. L.A. did not agree to change the terms of the deal, and the trade fell through.

Denver's on a bye this week, so coach Sean Payton does not have media availability, but Chargers coach Jim Harbaugh spoke to reporters in California. Harbaugh said the NFL should look into the "loophole" the Broncos used that "sets a bad precedent."

"They told us they weren’t going to pass him if it was a fourth and a fifth, which was agreed upon," Harbaugh said, via the Denver Post's Parker Gabriel.

It remains to be seen if the league will look into the situation. Harbaugh certainly believes it's a "loophole" that the Broncos attempted to exploit to get a better deal, but Denver will designate the unprocessed trade as a "failed physical."

The Broncos are scheduled to host Henley and the Chargers in their regular season finale in Week 18. This offseason, it will be interesting to see what Denver's medical staff thinks of Henley's knee when the linebacker hits free agency.