IPL Mega Auction: Player Retention Rules

The BCCI has prepared the blueprint for the new edition of the Indian Premier League which will feature two new franchises. The plan revolves around execution of two new franchise development, new player retention rules before auction, IPL mega auction, increments in salary purse and a fresh media rights tender.

The plan is set to be executed between August 2021 and January 2022 as follows:

Mid-August 2021: Tender documents for new franchises will be out.

Mid-October 2021: Introduction of the new franchises.

December 2021: Mega Auction will be held.

Mid-January 2022: Tender document for the new media rights sale will be put forth.

Two New Franchises:

The BCCI has finally made up its mind to introduce two new franchises to IPL. The documentation for the parties interested will be brought out in mid-August and following the mandatory checks, bids will be opened in mid-October during the IPL-Phase 2 in the UAE.

Kolkata-based RP-Sanjiv Goenka Group based out of Kolkata; the Adani Group based in Ahmedabad; Aurobindo Pharma Ltd based out of Hyderabad and the Torrent Group that operates from Gujarat are learnt to be showing interest.

Increments in Salary Purse:

The BCCI is set to increase the salary cap from 85 crore INR to 90 crore INR, that will mean adding 50 crore INR to the total salary pool among 10 franchises (including the 2 new franchises).

Franchises are required to spend at least 75% of the allotted purse mandatorily.

Over the  next three years, the salary cap will increase from 90 crore INR to 95 crore INR and eventually to 100 crore ahead of the 2024 IPL season.

New Player Retention Rules:

As per the new player retention rules ahead of the mega auction – each franchise will be allowed to retain four players in either of the 2 comibinations:

1. 3 Indians and 1 overseas player
2. 2 Indians and 2 overseas players

Franchises retaining players must deduct specified sums from their salary purse ahead of the mega auction. The salary deduction, in the existing structure is: 15 crore INR, 11 crore INR and 7 crore INR if three players are retained.

If two players are retained, the salary structure for the players is 12.5 crore INR and 8.5 crore INR.

In case of one player being retained – 12.5 crore INR is stipulated to be deducted from the purse.

Now that the new retention rules allow up to four players being retained and the salary purse increased to 90 crore INR, the above structure may undergo a slight change.

IPL Mega Auction:

The all new IPL Mega Auction featuring 10 teams is likely to take place in December 2021.

New Media Rights:

The BCCI will conduct the new media-rights auction towards the end of 2021. With two new franchises introduced, there will be a increase in the number of matches and the battle for the media rights could be fierce.