The main reason is that he was no longer wanted, he was indecisive on whether he wanted to retire or not. The Packers decided to trade him because he wanted to play and they did not want him to play with them anymore.
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Ron Wolf, general manager of the Green Bay Packers, traded for Atlanta's Brett Favre, giving the Falcons the 19th overall pick in the 1992 draft. The Falcons drafted RB Tony Smith, and he ended up playing only three seasons in the NFL.
They didn't think he was going to be as good as they thought he would be.
Because they did not need a Quarterback at the time.
Brett Favre was traded from the Packers to the New York Jets by General Manager Ted Thompson in 2008.