Explained: What is the Rs 18 crore salary cap for overseas players in IPL auction?

sanjeev

khelja|30-09-2024

New Delhi: The Board of Control for Cricket in India (BCCI) and the Indian Premier League (IPL) Governing Council on Saturday announced the new rules and regulations for the upcoming IPL 2025 mega auction.
Apart from the number of retentions and RTMs, the IPL Governing Council also confirmed some new regulations regarding overseas players’ participation and their salaries in the IPL. Each team can retain a maximum of six players ahead of the IPL 2025 mega auction. The franchises have the choice of using six direct retains or a combination of retentions and RTMs. A franchise can retain a maximum of five capped and 2 uncapped players irrespective of whether them being Indians or foreigners. Meanwhile, the IPL Governing Council also proposed a new rule for overseas players as a step to curb the misuse of high demand-less supply imbalance during the mini-auctions. It has been often highlighted in the past how some overseas players have withdrawn from mega auctions and entered mini-auctions purposefully to ensure bigger paycheques in the IPL. As per the new rules announced by the BCCI, it is now mandatory for an overseas player to register for the mega auction. Any player who fails to put his name in the mega auction without a valid reason will be barred from taking part in the next mini-auction. Exceptions will only be granted in case of injuries or medical conditions provided by the home board of the player. What is the new salary cap rule for overseas players in the IPL? The BCCI has also introduced a new salary cap for overseas players which will come into effect from the IPL 2026 mini-auction next year. As per the rule, a foreigner can earn a maximum of only Rs 18 crore from the mini-auction from next year. As per the rule, the maximum fee for an overseas player in the mini-auction cannot be more than that of the highest-earning Indian player in the previous season. The maximum salary for an overseas player will be determined by the highest retention price (Rs 18 crore) or the highest auction price fetched by an Indian at the previous edition, whichever is lower. For example, if Virat Kohli is retained by RCB at the highest bracket of Rs 18 crore and Yashasvi Jaiswal becomes the most expensive Indian at the IPL 2025 mega auction by fetching a sum of Rs 19 crore, the maximum salary of an overseas player will be capped at Rs 18 crore in the mini-auction in 2026. Similarly, if Kohli is retained for Rs 18 crore and Jaiswal is sold for Rs 15 crore at the mega auction this year, the salary of an overseas player will be capped at Rs 15 crore which is the lower of the two. What if the bidding goes past the 18 crore mark for an overseas player? In case the bidding war for an overseas player crosses the 18 crore mark at the IPL mini-auction, the player will be eventually sold to the winning bidder for the same amount. The amount will also be deducted from the team’s purse. However, the incremental amount (over Rs 18 crore or 15 crore in the above examples) will go to the BCCI. The Indian cricket board has said it will use the funds towards the welfare of players. For example, if Mitchell Starc is sold for Rs 22 crore at the IPL mini-auction next year and Jaiswal is the most expensive Indian buy from the mega auction this year at Rs 15 crore, the Australian pacer will get a salary of Rs 15 crore only. The remaining amount (22-15 = 7 crore) will go to the BCCI from his team’s purse.
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