Orlando City Deals Dagur Dan Thorhallsson to Montreal for $500,000 in GAM

The Lions continue to maneuver toward the 2026 season, trading Icelandic international midfielder/defender Dagur Dan Thorhallsson to CF Montreal in exchange for $500,000 in General Allocation Money (GAM), with up to an additional $125,000 in GAM possible based on the player reaching performance metrics stipulated in the deal. Specific details other than those were not released by the club.

“Dagur has been an incredible professional for us over the past three seasons,” Orlando City SC General Manager and Sporting Director Ricardo Moreira said in a club press release. “His dedication to the team, ability to embrace our culture, and knack for bringing every group together made him a joy to have in our locker room. We’re grateful for everything he’s given to the club and wish him nothing but the best in this next chapter of his career.”

Orlando City signed Thorhallsson on Jan. 31, 2023 to a two-year deal with two additional option years for 2025 and 2026, but on July 18, 2024, the club announced that it had re-signed him to a new contract through 2026 with a club option for 2027. The versatile Icelandic international began is OCSC career as a backup midfielder, became the team’s starting right back in 2024, and then filled in at multiple spots in 2025 after Alex Freeman seized the starting fullback position on the right side.

The 25-year-old native of Hafnarfjörður, Iceland was a critical role player for the Lions this season, appearing in 31 of the club’s 34 regular-season matches, starting 11 and playing 1,104 minutes. He scored an OCSC career-high three goals without an assist on eight shots (three on target) while passing at an 88% success rate with 10 key passes. On the defensive side, he recorded 20 tackles, 10 clearances, seven interceptions, and seven blocked shots. He committed 10 fouls, suffered 16 fouls, and received three yellow cards.

Thorhallsson departs having scored eight goals and adding nine assists across all competitions in 116 appearances (70 starts) across his three seasons with the Lions.

What It Means for Orlando City

The $500,000 (at minimum) in GAM is a lot for a role-playing depth player and will help add flexibility in roster building as Orlando City prepares for the 2026 season. Obviously, at the same time, that means the Lions lose a critical depth player at multiple positions — primarily fullback, defensive midfield, and wing. It is the highest total of initial GAM (i.e. received up front) in Orlando City history, surpassing the $450,000 received for Kevin Molino and Patrick McLain. Justin Meram brought more total GAM in return with $750,000, but only $300,000 of that was up front.

So, the logical conclusion is that someone’s cap hit needs to be bought down — possibly the new goalkeeper coming in to replace Pedro Gallese and/or a new contract for Freeman — as GAM is used to manage the salary cap through buying down players’ budget charges against the cap.

It also means that someone else must fill in at the various spots where Thorhallsson filled in previously. The Lions have been linked with Luis Otavio, with some reports saying that deal is in the process of being finalized. Otavio would join a central midfield that includes Eduard Atuesta, Wilder Cartagena, Colin Guske, and (when he returns from injury) Joran Gerbet. Kyle Smith could re-sign and back up Freeman at right fullback. Orlando has other wing players available, including Nico Rodriguez, who will need to get more minutes, to back up in the attacking midfield.