Cricket Player Auctions Explained — How IPL and T20 Auctions Work
How do cricket player auctions work in the IPL and other T20 leagues? A complete guide to the auction process, retention rules, salary caps, and why some players fetch record bids.
Cricket player auctions are the process by which franchise T20 leagues distribute players to their ten (or more) competing teams. The most famous is the IPL auction, held annually in January or February. Auction events determine each franchise's playing squad for the upcoming season and set the market price for cricket talent across all formats and nations.
How the IPL Auction Works
Before the auction, each franchise can retain a limited number of players from their previous squad — up to five players under the current retention rules, with decreasing amounts deducted from their salary cap for each retention. Players who are not retained enter the auction pool, which also includes all players who registered for the auction. During the auction, an auctioneer calls each player's name and their base price; franchises bid by raising their paddles until only one bidder remains. The winning franchise pays the hammer price from their salary cap.
Auction Process Example
Player X has a base price of ₹50 lakhs (approximately $60,000 USD). Franchise A opens bidding at the base price. Franchises B and C also bid. As the price rises past ₹2 crores, only Franchise A and B remain. At ₹3.5 crores, Franchise B drops out — Franchise A wins the player for ₹3.5 crores. That amount is deducted from Franchise A's remaining salary cap.
Salary Caps
Each IPL franchise has a salary cap — a maximum total they can spend on all contracted players in a season. The cap was ₹100 crores (approximately $12 million USD) per franchise as of 2024, though this has increased over the years as the league's revenues grew. The salary cap prevents the wealthiest franchises from simply buying every top player; it forces strategic decisions about which players to retain versus which to release.
Mini Auctions vs Mega Auctions
A mini auction is held in years between full squad resets — franchises release some players and bid on replacements, but retain the core of their squad. A mega auction (held every few years) involves all squads being reset and rebuilt from scratch — every player re-enters the pool. Mega auctions produce the largest price discoveries and enable franchises to rebuild their team identity. The most recent IPL mega auction saw record prices for overseas fast bowlers and power-hitters.
Frequently asked questions
What is a base price in the IPL auction?
The base price is the minimum starting bid for a player in the auction. Players register themselves with a base price (typically between ₹20 lakhs and ₹2 crores) — they will not be sold for less than this amount. A franchise must open bidding at or above the base price. Some elite players set very high base prices that reflect their expected market value.
What happens to a player who is not sold in the IPL auction?
An unsold player can re-register at a different (typically lower) base price in the same or a subsequent auction. Being unsold is not permanent — a player may find a buyer at a revised price point. Some players who go unsold in one auction are snapped up in the same auction session at a second attempt when they lower their base price.
Can a franchise use 'RTM' (Right to Match) in the IPL auction?
RTM (Right to Match) cards allow a franchise to match the final bid price for a released player and retain them at that price, deducted from their salary cap. The availability and rules around RTM cards change periodically — they were used in some IPL mega auctions but were not available in others. The exact RTM rules are set by the BCCI before each auction.