IPL 2025: The Indian Premier League (IPL) 2025 is shaping up to be a game changer. With a significant rise in the team salary cap, franchises will now have ₹146 crore to spend, giving them more financial muscle to build stronger squads. As the auction purse grows to ₹120 crore, teams will have to strategically manage this increased budget, which includes incremental performance pay and the newly introduced match fees. The IPL 2025 is not just about fierce competition on the field, but also intense bidding wars at the auction table.
Let’s have a look into more details: IPL 2025
A ₹120 Crore Auction Purse
For the upcoming IPL Mega Auction, the Board of Control for Cricket in India (BCCI) has increased the auction purse to ₹120 crore, a ₹20 crore jump from last season. This is a part of the total ₹146 crore salary cap, which also includes performance based incentives and match fees. The budget is set to rise even further, with projections showing a cap of ₹151 crore for IPL 2026 and ₹157 crore for IPL 2027.
The additional funds allow franchises more freedom to retain and buy marquee players while fostering fierce competition during auctions. But it also places pressure on them to wisely manage their budget, especially as retentions and right to match (RTM) cards come back into play.
Retentions & RTMs
IPL 2025 allows teams to retain up to six players, with five of them being capped. While this helps franchises keep their core players, it comes at a cost, literally. Retaining five capped players along with one uncapped player would cost a team ₹79 crore, leaving them with only ₹41 crore for the auction. Franchises must also consider the return of the RTM rule, which gives them the option to reacquire a player by matching the highest bid from the auction. This strategic dynamic is sure to make the upcoming IPL auction a high stakes affair.
New Match Fees: More Incentives for Players
A standout feature of IPL 2025 is the introduction of match fees, ₹7.5 lakh per player per match, on top of their IPL contracts. A player who plays all 14 league games could earn an extra ₹1.05 crore, which adds a new financial dimension to the tournament. The BCCI has designed these fees to ensure that players are well compensated even if their team performs poorly in the season, pushing teams to maintain a well-rounded squad.
Salary Caps & Incremental Pay
Franchise spending is expected to increase year after year. While the total salary cap stands at ₹146 crore for 2025, it will rise by ₹5 crore each year until 2027, putting more pressure on teams to balance marquee signings with role players. Incremental performance pay, based on team standings, is another element that will impact franchise budgets, making performance on the field even more lucrative for players and expensive for owners.
Higher Base Prices for Auctions
Capped and uncapped players will also benefit from increased base prices at the auction. The base price for capped players will now range from ₹75 lakh to ₹1.25 crore, while uncapped players reserve price has been bumped to ₹30 lakh-₹50 lakh. This ensures that players, particularly those who excel in international cricket before an IPL season, can secure higher bids.
Impact Player Rule & RTM Returns
Despite some controversy, the Impact Player rule will remain in place for IPL 2025, allowing teams to substitute a player mid match for tactical reasons. This rule has already contributed to higher scoring games and more thrilling matchups, much to the fans’ delight. Alongside this, the RTM card returns, adding another layer of strategy to the auction. Teams will be eager to use their RTM cards to retain fan favorites, but will face intense bidding wars before doing so.
Despite increasing player salaries and operational costs, IPL franchises are well positioned to absorb these expenses due to a substantial rise in IPL’s central revenue share. This is fueled by the recent surge in media rights earnings, ensuring that IPL continues to be one of the richest sporting leagues in the world.
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FAQs
What is the total salary cap for IPL 2025?
The total salary cap for each IPL franchise in 2025 is ₹146 crore
