IPL Auction Explained — How It Works, Purse Limits and Strategy
How the IPL player auction works, what the salary purse cap is, the difference between retained players and auction players, and how franchises build their squads.
The Indian Premier League player auction is one of cricket's most dramatic annual events — 200+ players sold to eight franchises in a live bidding process, with prices sometimes reaching USD 2-3 million for elite all-rounders. Understanding how the auction works reveals how franchises build their squads and how player values are determined in the world's richest cricket league.
The Salary Purse
Each IPL franchise operates under a salary cap — the maximum total salary the franchise can pay its players. As of 2024-25, the salary cap per team is INR 120 crore (~USD 14.5 million). This purse is used across retained players and auction purchases. Franchises must have enough remaining purse to fill their squad to the minimum required size (typically 18-25 players including overseas players).
Retentions and Right-to-Match
Before the auction, franchises can retain a set number of players from the previous season without bidding (retentions). In the 2025 mega-auction cycle, teams could retain up to 6 players. Retained players are deducted from the salary purse at pre-agreed prices. Right-to-Match (RTM) cards allow a franchise to match the highest bid for a player who was part of their squad — effectively buying them back at the auction price.
Mega Auctions vs Mini Auctions
A mega auction occurs every few seasons — all players not retained enter the pool and the entire squad is rebuilt. A mini auction happens in the season(s) between mega auctions — only unsold players, released players, and new entrants enter. Mini auctions are typically smaller (50-80 players) and are used to fill gaps rather than rebuild squads. The IPL mega auction of 2022 (ahead of the expansion from 8 to 10 teams) was the biggest in IPL history.
Overseas Player Rules
IPL squads can include a maximum of 8 overseas players, of whom only 4 may play in the XI in any match. This restriction forces strategic squad construction — franchises must balance overseas pace, spin, and batting to have flexibility in all conditions. Elite overseas players (e.g. Pat Cummins, Sam Curran) attract the highest auction prices because they fill positions Indian players cannot.
Frequently asked questions
What happens to unsold players?
Unsold players can be re-entered into the auction later (in the 'accelerated auction' phase) at a lower base price, or they remain unsold and may play in domestic cricket. Teams can also sign unsold players for the domestic player minimum fee.
What is the base price in an IPL auction?
Each player is assigned a base price (set by the player or the BCCI) — the minimum starting bid. Base prices range from INR 20 lakh (~USD 24,000) for domestic players to INR 2 crore for established internationals.
Can a player refuse to go to a franchise that buys them?
Under BCCI rules, players registered for the auction are bound to join the franchise that wins the bid. Refusing would result in disqualification from future IPL seasons.