IPL Auction Process Explained: RTM, Purse, and How Teams Are Built
The IPL auction is one of cricket's most watched events — a live auction where franchises spend crores to build their squads. This guide explains the auction process, retention rules, Right to Match cards, salary caps, and how franchises strategise.
Each year before the IPL season, franchises have an opportunity to sign new players through the IPL auction. The auction is a live event where teams bid against each other in real time for available players. Understanding the auction requires understanding retentions, RTM cards, salary caps (purse), and how the draft order works.
Retentions
Before the auction, each franchise can retain a limited number of players from their previous squad without putting them into the auction. The number of retentions varies by IPL season — in some mega-auctions, teams can retain up to 5 players; in annual mini-auctions, they keep most of their squad with only a smaller player pool available. Retained players' salaries are deducted from the franchise's total purse.
The Purse (Salary Cap)
Each franchise starts with a total purse — a maximum they can spend across all players. In recent seasons, the purse has been around INR 100 crore per team. After retentions, the remaining amount is available for the auction. The purse creates strategic decisions: spend big on one or two marquee players, or build squad depth with several mid-range signings?
Right to Match (RTM)
The Right to Match (RTM) card allows a franchise to match the final bid placed by another team for a player they released before the auction. If CSK released MS Dhoni and another team bids INR 15 crore for him, CSK can use their RTM to match that bid and retain Dhoni at the same price. Each team has a limited number of RTM cards. This mechanism prevents teams from losing key players without recourse.
Auction Strategy
Franchise strategy varies enormously. Some teams identify specific players early and pursue them aggressively. Others let rivals overpay and pick up quality players in later rounds when purses are depleted. The concept of 'budget busting' — forcing a rival to spend more than planned on a player — is a real tactical play. Teams also account for the balance of India players vs overseas players (max 4 overseas players per XI).
Overseas Player Rules
IPL squads can include a maximum of 8 overseas players but only 4 can play in any match XI. This creates pressure: franchises must decide which 4 overseas players are worth match-day slots. Impact Player rule (introduced 2023) adds further complexity — a fifth player can be used as a substitute during the match, allowing an extra overseas player to participate.
Frequently asked questions
How does the IPL auction work?
Players are put up for bidding one by one. Franchises bid against each other in real time. The highest bidder signs the player. Teams have a capped total purse to spend across the whole auction.
What is an RTM card in the IPL?
Right to Match (RTM) allows a franchise to match the final auction bid for a player they previously released, reclaiming them at the same price. Teams have a limited number of RTM cards.
What is the IPL salary cap (purse)?
The IPL salary cap (purse) is the maximum amount each franchise can spend on all players combined. In recent seasons this has been approximately INR 100 crore, with retained players' salaries deducted first.