IPL Auction Explained: Purses, Base Prices, Retentions and Bidding
A plain-English guide to how the Indian Premier League player auction works, from purses and base prices to squad limits, retentions and Right to Match.
The Indian Premier League auction is the event where franchises build or reshape their squads for the season ahead. Players are put up for sale one at a time, and the teams bid against each other until only one is left. It is part cricket selection meeting, part strategy exercise, and it has become one of the most closely followed dates in the sport’s calendar. This guide explains the main ideas in simple terms.
Why the IPL uses an auction
When the IPL began in 2008, the organisers chose an auction rather than a draft or a system of fixed contracts. The idea was to let teams compete openly for talent while a spending limit kept the competition reasonably balanced. The first auction took place in February 2008, and MS Dhoni was the most expensive player, joining Chennai Super Kings for 1.5 million US dollars. Since then the format has been refined many times, but the core principle has stayed the same: every franchise has a limited budget and must decide where to spend it.
The purse and the bidding process
Each franchise is given a purse, which is the total amount it may spend on its squad. The governing body sets this figure and has raised it over the years, so it is worth checking the rules for any specific season rather than relying on an old number. Any money already committed to retained players is deducted from the purse before the auction begins.
Every player is assigned a base price, which is the lowest amount at which bidding can start. Players choose a base price band when they register, and well-known names usually go into the highest bands. Bidding then rises in set increments. A franchise signals a bid, rivals respond, and the player goes to whoever makes the final bid. If nobody bids, the player is marked unsold, although unsold players can sometimes be brought back later in the event in an accelerated round.
Squad rules teams must respect
A franchise cannot simply spend freely. It must stay within squad limits as well as its budget:
- A squad can contain a maximum of 25 players and must reach a minimum of 18.
- No more than eight overseas players may be in a squad.
- A maximum of four overseas players can appear in the playing XI on match day.
- Total spending cannot exceed the purse.
These limits force teams to plan. A side that spends heavily on a few stars may struggle to fill the remaining places with quality, while a side that spreads its money may lack match-winners. Most franchises arrive with a list of priorities and a rough idea of how much they will pay for each role, such as an opening batter, a spinner or a finisher.
Retentions and the Right to Match
Teams are normally allowed to keep some of their existing players before the auction. The number of retentions and the way their cost is calculated have changed between cycles, and the rules for each season are announced in advance. Retained players are paid from the same purse, so keeping a big name reduces what is left to spend at the auction.
A related mechanism is the Right to Match, often shortened to RTM. It lets a franchise bring back a former player after the bidding ends by matching the highest bid. It was used in the 2018 auction and again in 2025, and its availability depends on the rules for that cycle. When it is in use, rival teams must factor in the chance that the previous team will simply step in and take the player at the final price.
Mega auctions and mini auctions
A mega auction is a large reset in which most of the playing pool is available again, with only limited retentions. A mini auction, held in the years between, is smaller and used for filling gaps and replacing players who have left or retired. Because mega auctions reshape teams so much, they tend to produce the biggest headlines and the most dramatic bidding wars.
How to follow an auction
The simplest way to understand what is happening is to watch three things: how much purse each team has left, how many places it still needs to fill, and how many overseas slots remain. A team with plenty of money but few overseas slots is in a very different position from a team with the reverse. Reading these numbers makes the bidding easier to follow and explains why a franchise sometimes stops at what looks like a bargain price.
Prices alone do not measure a player’s value. A large fee can reflect scarcity, such as a wicketkeeper who can open the batting, or competition between two teams chasing the same role. Squad balance across the season matters more than any single signing.
Frequently asked questions
How many players can an IPL team have?
A squad can have a maximum of 25 players and needs at least 18, with no more than eight of them being overseas players.
What is a base price in the IPL auction?
It is the minimum amount at which bidding for a player can begin. Players choose a base price band when they register for the auction.
What does Right to Match mean?
It allows a franchise to retain a former player after the bidding ends by matching the highest bid. It is only available in auction cycles where the rules include it.