The Denver Broncos stunned the NFL world late Wednesday night by announcing that their trade for inside linebacker Daiyan Henley has been called off. The team did not specify why it was backing out of the pact it made Tuesday with the Los Angeles Chargers.

Hours after the dust settled, ESPN NFL insider Adam Schefter provided a bit of clarity, reporting that Denver had medical concerns over Henley — specifically, his knee — that Los Angeles didn't share.

The Broncos, after flagging the issue, attempted to negotiate a revised trade deal, presumably without the 2028 fifth-rounder included in the original agreement. The Chargers rebuffed, and the deal was dead.

"It is not uncommon for one team to have some medical concerns about a player while another does not. In this case, Denver had concerns about Henley following his physical," Schefter wrote on X. "Even then, the Broncos still wanted Henley with Denver and LA discussing revised trade alternatives throughout the day, taking into account those concerns. In the end, no agreement was reached. The deal was off."

Pro Football Talk's Mike Florio later noted that Denver discovered arthritis in Henley's knee, which explains why the club got cold feet at the eleventh hour.

“The Broncos discovered an issue with Henley’s knee,” Florio wrote Thursday. “It has, we’re told, arthritis.” He added that a source with neither the Chargers nor the Broncos told PFT that most, if not all, starting linebackers in the NFL have some degree of arthritis in their knees.

Henley has appeared in all eight games for the Chargers thus far this season, notching 51 total tackles (21 solo), two passes defensed, one interception, a forced fumble, and a half-sack. He was limited prior to Week 6 with a listed knee injury; he was designated as questionable but ended up playing.

What This Means for Denver

Obviously, the Broncos prefer to have Henley on the roster today rather than the prospect of facing him again later this season. They made a purposeful acquisition in the hopes of improving the pass coverage within their linebacker corps — something Henley excels at.

It's a bummer in that sense, but the Broncos obviously felt that Henley's condition could have long-term ramifications and wasn't worth the capital they agreed to surrender for him. How that ends up shaking out will be determined.

Moving forward, however, is the status quo: Alex Singleton and Justin Strnad as the starting ILBs, with Karene Reid and Jordan Turner as the primary backups. The Broncos also have seventh-round rookie Red Murdock on the practice squad; Murdock may eventually see playing time now that Henley is no longer in the picture.

Denver also has an open spot on the 53-man roster after waiving defensive back Sean Fresch Jr. to initially make room for Henley.