What Waterman, Terán Deals Mean for the Chicago Fire's Roster

The Chicago Fire had their most consequential 24 hours of the summer transfer window so far, with a major departure and addition taking place in quick succession and both coming to light Tuesday morning. Carlos Terán, the team's longest-serving non-homegrown player, left the club for Brazilian Serie B side Club Athletico Paranaense, and hours later, the club agreed a trade for Canadian international defender Joel Waterman.

Here's how the last 24 hours played out for the Fire, and what both completed deals mean for them in the final hours before the looming transfer deadline.

“2+4+2” Model

One of the biggest questions over the Fire this summer was whether or not they would sign a Designated Player on the market. After being very heavily linked with global icons Neymar Jr. and Kevin de Bruyne, as well as Norwegian international star Patrick Berg, it seemed like Gregg Berhalter and Co. were going to make a splash with a big-money addition.

In the end, however, there won't be a DP signing this summer. Sources told MIR97 Media that the Fire committed yesterday to the “2+4+2” roster construction model, which means they have two DP slots, four Under-22 Initiative slots, and receive $2 million of discretionary General Allocation Money. They had received $1 million of the GAM when they opted for the “2+4+2” model for the first half of the season, and can now access the second half of the sum.

With this model, the Fire still have the ability to sign one player. Essentially, they can bring in a non-DP who would not push the team over the salary cap, including a U-22 Initiative player or TAM player, depending on the conditions of whatever deal takes place.

Terán Leaves for Brazil

On Monday night, everything was agreed between the Fire and Athletico Paranaense to complete the transfer of Carlos Terán. The 24-year-old Colombian defender, who has been with the Fire since 2020, leaves in a more than $2 million US swap that opens a senior roster slot but not an international slot, as he previously acquired a Green Card. His departure also frees up a chunk of GAM that was being used to buy down his cap hit.

Importantly, the money received in the Terán sale is convertible to GAM, though it will count for next season. Essentially, this gives the Fire a head start on next season's roster. The Fire also get a fair sum for Terán, who has been riddled with injuries, and there's no guarantee they would get this big of a fee if they try to sell him 12 or 18 months from now as his contract winds down.

Terán said goodbye to his teammates and staff this morning shortly before the start of Tuesday training. He is on the way to Brazil and no longer a Fire player.

Fire Trade for Waterman

This morning, the Fire reached an agreement with CF Montréal to trade for their starting right center back, Joel Waterman. The trade is for a base sum of $500,000 of GAM split across this season and next season, with $200,000 of it coming in 2025 GAM and the other $300,000 in 2026 GAM, as well as two conditional add-on clauses. Waterman is the direct replacement for Terán, so it's no surprise that the deals are connected and were completed in quick succession.

In terms of salary cap changes, the deal requires very little maneuvering. Waterman will hit the cap for 2025 at the same amount as Terán, mainly because Montréal are still eating a large portion of his salary amidst their ongoing firesale and roster reset. The Fire will take on $150,000 of Waterman's reportedly $555,400 salary (per the latest MLSPA Salary Guide), meaning he has a like-for-like hit on the cap from what Terán took up (the Fire bought down his cap hit using allocation money).

Waterman is set to be the starting right center back next to Jack Elliott for the remainder of 2025, though alternative options like Christopher Cupps, Sam Rogers, and Omar González will provide competition and backup. It's quite likely that the Fire will be back in the market to sign a center back in the winter, and if that happens, Waterman could represent a high-level MLS depth piece.

While Americans playing on the three Canadian MLS teams do not require international slots, MLS rules stipulate that Canadians on American roster cannot get the same advantageous treatment; this means that Waterman requires an international slot to join the Fire, and that has already been acquired via a trade with St. Louis CITY SC. The Fire parted ways with $150,000 in GAM for this season, digging into their supply of 2025 allocation money acquired as part of the “2+4+2” model, which will expire at the roster freeze deadline in mid-September.

Not Done Yet?

There are just over 48 hours left before the window slams shut on Thursday night at 11:59 p.m. Central Time. The Fire have an open roster slot, and could yet fill it, despite the limited time frame. Last year, the Fire spent $75,000 of GAM to acquire backup left wingback Ari Lassiter in a last-minute trade with Montréal, and they could similarly make a move at the buzzer to strengthen before the final stretch of the season.

With the clock ticking on an eventful transfer window, the excitement isn't done yet, and everything could change in the blink of an eye, like it did overnight here with Terán and Waterman.