EXPLAINED: How are IPL players paid?

The process of recruiting a player’s services ends at the knock of the hammer, but have you ever wondered what happens after that? 

When does this money actually go to the player? Or do they even pocket the entire amount?

Take Rishabh Pant for example. He became the most expensive player in the history of the Indian Premier League (IPL) when Lucknow Super Giants purchased him for INR 27 crore in the recently concluded Mega Auction. He will be expected to pay a TDS of 2.7 crore (10%) and earn a post-tax income of 24.3 crore for ONE SEASON.

The agreement signed between the player and team is only for a period of one year. Should a team want to retain the player, a contract extension has to be floated at the same salary that was being paid earlier. Although, there are special cases where the players may be retained at a hiked price. 

A player can also choose to exit a franchise before the end of the contract duration, and the respective team will have to pay the player only for the term the player was contracted. 

Overseas players, obviously, have it slightly different. 

Foreign sportspersons participating in the tournament are taxed at a flat rate of 20% on their income. The respective foreign cricket boards are also paid 20% of the final bid for granting an NOC and allowing their players to participate in the tournament. This fee, however, is paid from the IPL central revenue pool.   

For instance, Jos Buttler, the most expensive foreign purchase in the IPL 2025 Mega Auction, pinched 15.75 crore out of Gujarat Titans’ pocket. 20% of this, amounting to 3.15 crore, will go to the ECB, with the amount borne by BCCI and the franchise, better known as the IPL central revenue pool.

There was a minor tweak made to this in September this year, as the BCCI announced a cap on the price overseas players can command at an IPL auction. 

The rule implies that salaries of premium overseas players will henceforth be no more than that of the highest-earning Indian player in the previous season — whether the price at which he had been retained or the highest bid attracted at last year’s auction, whichever is lower. This was introduced only a couple of months ago, and will come into effect only from the next auction.

Therefore, since Virat Kohli is the most expensive Indian to be retained by Royal Challengers Bengaluru for a fee of 21 crore, and Rishabh Pant the most expensive Indian at the auction with a salary of 27 Crore, no overseas player will receive more than 21 Crore in the next auction. 

Unlike the initial years, the cap won't be enabled at the auction with a tiebreaker to break it. Instead, teams will continue bidding till they get the player, and the differential will go to the BCCI coffers. 

Hypothetically, if Cameron Green registers himself in the next auction and ends up fetching a winning bid of 25 crore, then he’ll be paid only 21 crore with the remaining 4 crore going to BCCI for player welfare. 

What happens to players who are bought in the auction, but do not play a single match? Do they get paid? 

YES! 

A player who is available for the entire season is entitled to receive the entire sum even if he does not play a single minute in the tournament. 

Injuries, however, are looked at differently. If a player injures himself before the start of an edition, then IPL teams aren’t liable to compensate them. A player will be paid in full in case of any mid-season injury.  

If a player backs out before the start of the tournament, IPL teams once again won’t be expected to cough up the salaries. And in cases where a cricketer pulls out in the middle of a season, the player will be paid pro-rata. 

Okay. So, now we’ve got a player who’s been available for the entire season and was purchased for a huge sum of money at the auction. So, how do franchises pay their recruits? Are they all paid in advance before a season begins?

Big amounts mean big transactions. 

Disbursal policy varies from franchise to franchise. However, there are a few popular modes that teams follow. 

Some franchises hand out payments in full at the first pre-tournament team camp. Some pay half of the salary upfront before the tournament and the rest during the tournament. Some split it into three chunks: two small chunks that are paid within a stipulated time before and after the tournament and a major chunk paid during the tournament. 

Apart from the salary fee determined at the auction, they are also equipped with daily compensation. This allowance again depends on teams and other factors, such as whether the tournament is being held in India or outside. For a home IPL, the rule of thumb is that players get anywhere around ₹5000 per day to cover their meals and other daily expenses. 

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