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When an Greater Daemon is brought into play it replaces a champion, lord, or sorcerer. My question is what happens if there isn't room. The greater daemon is a larger base size than non-terminator champs. If they are surrounded by models, which is likely in an assault, there isn't room to put the GD down. There also isn't a rule specifically permitting you to make space for it. How is this handled then?

Given you are not allowed to place the model into close combat in the first place, it must arrive 1" away from any enemy models, this isnt an issue. You remove the model and replace it as close as possible.

See the boxout on summoning GD, last paragraph.

I totally missed that bit >_< question answered.