How does IPL auction work? Rules, purse & RTM explained

The first-ever auction for the Indian Premier League (IPL) was held in February 2008, marking a significant moment in not just Indian cricket but in world cricket history. Over the years, the IPL auction has become a highly anticipated event among fans and players, who anxiously wait for their names to go under the hammer.

The event has also transformed lives of many cricketers, paving the way for several rags-to-riches stories. Over the past 19 editions of the tournament, the BCCI (Board of Control for Cricket in India) has brought several revolutionary changes to the IPL, keeping in mind the interest of both the players and team owners. Here’s a look at the different stages of how an IPL auction takes place:

How does player retention work?

Before the auction, first and foremost, the teams release and retain players from their existing rosters. The number of players a team retains and releases determines their purse amount. As per the IPL Governing Council player regulations, each team was allotted a purse of Rs 125 Crore for the IPL 2026 auction.

For mega auctions, teams are allowed to retain a maximum of six players through retentions or using the Right to Match (RTM) option. There’s a maximum cap on the number of players a team can retain, which is five for capped players (Indian & Overseas) and two for uncapped players.

If a team doesn’t utilise all its six retentions before the auction, they will be provided with an RTM card for every unfilled retention slot at the auction. Also, there’s no maximum cap for the retention price of any player.

How is a team's purse affected?

However, there's a fixed retention slab for every player retained, which is INR 18 crore for the first retention, INR 14 crore for the second, INR 11 crore for the third, INR 18 crore again for the fourth, and INR 14 crore again for the fifth player retained. For every uncapped Indian player, the retention price is fixed at INR 4 Crore.

For Example – If CSK retain four players with a salary of INR 10 Crore each. They will be left with INR 85 Crore to spend at the auction. Additionally, they will be provided with two Right to Match cards to use at the auction, having only utilised four out of their six retention slots.

On the other hand, ahead of mini auctions, teams can retain as many players as they like from their existing roster. Teams can also engage in player trades ahead of the auction by selling or buying players within themselves at their current price for a particular cycle. The purse amount is added or deducted on the basis of players’ salaries.

What are the rules for squad size?

A team can build a squad of a maximum of 25 players, with a cap of eight on overseas players. The minimum squad size for each team is 18 players. 

After the retentions are done, the IPL governing council invites players to register their names for the auction. For a mega auction, which happens after a three-year cycle, a larger pool of players registers than for a mini-auction, which takes place every year.

Once all the players register, the entire list is provided to all the teams, who further trim it down, selecting the players they’re genuinely interested in. After the finalisation of the list, the IPL governing council releases the list of all players available at the auction, along with their sets and base price.

What is an RTM card?

A Right to Match card gives teams the option to match the highest bid their player gets at the auction. However, the bidding teams have the right to further increase the bid after the RTM card comes into play, to ensure that the players get their true market value.

If the team using the RTM card matches the final increased bid, they can retain the player, or else he gets sold to a new franchise. The final increased bid can be any amount at the discretion of the team. Notably, a team can only use an RTM card for a player who played for them in the previous season.

How does the auction work?

During the auction, players are divided into several sets, namely: all-rounders, fast bowlers, spinners, wicketkeepers, etc. The auctioneer announces the names from each set one by one. The order in which sets come into the auction is pre-decided by the IPL governing council.

Every player has a base price set at which his bidding starts, and it can go up until the teams decide to back out.

What happens if a player goes unsold?

If a player goes unsold once at the auction, there’s a possibility of him being brought back for bidding at a later stage during the event. Usually, the franchises are asked to name the unsold players they’re interested in buying again during the final stages of an auction to complete their squad.

If a player goes completely unsold at the auction, there’s a chance for him to get signed as an injury replacement.

Maximum salary rule for overseas players

The maximum salary an overseas player can earn is equal to the highest retention slab for the ongoing cycle or the most expensive bid for an Indian player at the auction, whichever is lower. However, the bidding will continue to go on until one team backs out, and the remaining amount after determining his salary will go to the IPL Players’ Fund, which will be used for their welfare.

For Example, Australia all-rounder Cameron Green was sold for INR 25.20 Crore at the IPL 2026 mini auction. However, he only got INR 18 Crore as salary, as it was the highest retention slab set for the IPL 2025 mega auction, with the balance amount going to the BCCI for the players’ welfare fund.

What happens if a player becomes unavailable after being sold?

If a player decides to opt out of the tournament after getting picked by a team at the auction, he will be banned from participating in the tournament and player auction for two seasons. However, a player can avoid the ban if he’s ruled out of the season due to an injury.

England batters Harry Brook and Ben Duckett are currently serving the ban after pulling out just before the start of the tournament.

Overseas players are only allowed to register for the mini auction if they have registered for the mega auction for the same cycle.

Note: The rules are only for the ongoing 2025-27 cycle of the IPL and can be changed by the IPL Governing Council.