IPL Auction: How Teams Build Their Squads

The IPL auction is held before each season (or every few years for a mega auction) and determines which players play for which franchise. Teams are given a salary cap and compete in a live bidding process for players — with the highest bidder winning the player.

Auction types

There are two types of IPL auctions. The annual mini-auction fills gaps in squads after retentions. The mega auction (held every 3-4 years) sees all players released and teams start fresh — they can retain only a limited number of players before the auction begins.

Salary cap

Each franchise has a fixed salary cap — in recent seasons approximately ₹100 crore (around $12 million USD). Teams must build a squad of 25 players (maximum) within this cap. Retentions count against the cap. The salary cap ensures no single team can simply buy all the best players.

Retention rules

Before a mega auction, franchises can retain a limited number of players without putting them in the auction. In recent mega auctions, teams have been allowed to retain 4 players. Retentions carry predefined deductions from the salary cap (e.g. first retention costs ₹16 crore off the cap, second ₹12 crore, etc.).

Right to Match (RTM) card

The RTM card allows a franchise to match the winning bid for one of their previously released players, regardless of which team bid highest. If Team A bids ₹15 crore for a player, Team B can use their RTM card to match ₹15 crore and take the player back. Teams receive a limited number of RTM cards per auction.

Base price and bidding

Every player is listed with a base price (their starting bid). Teams can choose to bid or pass. If no team bids, the player goes unsold and can re-enter at a lower base price. Popular uncapped (under-24) Indian players can fetch extraordinary prices if teams identify them as future prospects. Overseas players are limited to 8 per squad, with only 4 playing in any one match.