IPL Auction: How Player Auctions Work in the Indian Premier League
How the IPL player auction works — base prices, bidding, purse limits, retained players, and how franchises build squads for the season.
The IPL player auction is one of cricket's most distinctive and watched events. Held each year (or with a 'mega auction' every few years), it determines which franchise each contracted player plays for. The auction has made cricketing star salaries transparent and has transformed what it means to be a professional cricketer globally.
Two Types of Auction
The IPL uses two auction types. The annual auction covers players whose contracts have expired or who are newly registered. The mega auction (held roughly every 3 seasons) releases almost all players and every franchise rebuilds from near-scratch — only a small number of retentions are allowed. The mega auction creates greater parity and franchise restructuring.
Base Prices
Every player entering the auction is registered at a base price (₹20 lakh, ₹30 lakh, ₹40 lakh, ₹50 lakh, ₹75 lakh, ₹1 crore, ₹1.5 crore, ₹2 crore — in recent years these have been updated). Players choose their own base price from the available categories. If no franchise bids to meet the base price, the player goes unsold.
The Bidding Process
Franchises bid openly in ascending bids. The auctioneer starts at the base price; franchises signal bids (by raising a paddle); once only one franchise remains bidding, the player is sold to that franchise at the current price. Speed matters — successful franchise bidding teams have analysts tracking their squad gaps in real time.
Purse Limits
Each franchise has a fixed purse (budget cap) for the auction. In recent years this has been approximately ₹90 crore (around $11M USD), though it increases periodically. Franchises must stay within their purse. If a franchise overspends through aggressive bidding, they must release other players to free up budget.
Retentions and Right to Match
Before a mega auction, each franchise may retain a limited number of players without releasing them into the auction pool. Retained players cost a fixed deduction from the franchise purse. Additionally, the Right to Match (RTM) card allows a franchise to match the highest bid for a previously released player — effectively reclaiming them if they can afford to pay the final auction price.
Frequently asked questions
How does the IPL auction work?
Players enter the auction at a self-selected base price. Franchises bid in ascending open auction until only one franchise remains. The player is sold to that franchise at the final bid price. Each franchise has a fixed purse (budget cap) for the auction.
What is the IPL mega auction?
A mega auction is held roughly every 3 years, during which franchises must release almost all their players (keeping only a small number of retentions) and rebuild their squads entirely. It creates greater competitive parity and allows squads to refresh significantly.
What is a Right to Match (RTM) card in the IPL?
An RTM card allows a franchise to reclaim a previously released player at the final auction bid price, even if another franchise bid higher. The original franchise must match the highest bid to exercise the RTM. Each franchise gets a limited number of RTM cards per auction.