The IPL Auction Explained: Purse, Retentions and Right to Match
Before a ball is bowled, the IPL season is shaped in a hotel ballroom. The auction is where franchises spend their budget, gamble on young talent and occasionally lose their heads over a fast bowler. Here is how it actually works.
The purse
Every franchise gets the same salary budget, called the purse. Ahead of the 2025 season it was set at ₹120 crore, with scheduled increases in the years that follow. The purse must cover every player in the squad, which can hold up to 25 players including a maximum of eight overseas.
Because the cap is the same for everyone, the auction is a test of judgement, not wealth. A team that spends ₹25 crore on one player has less left for the other 24.
Mini auction vs mega auction
Most years there is a mini auction. Teams release a handful of players and bid to fill the gaps. Every third year, in a mega auction, squads are largely dissolved and rebuilt from scratch. Mega auctions took place ahead of the 2018, 2022 and 2025 seasons.
A mega auction is where dynasties are broken and new ones are built. Gujarat Titans, assembled from nothing at the 2022 mega auction, won the title in their first season.
Retentions
Before a mega auction, each franchise may keep a limited number of players without sending them to the auction. For 2025, teams could retain up to six players, with rules on how many could be capped internationals and how many uncapped. Each retention is charged against the purse at a fixed amount, so retaining a superstar has a real cost.
Right to Match (RTM)
The RTM card lets a franchise reclaim one of its former players after the bidding has finished. When the hammer falls, the player's old team is asked whether it wants to match the winning bid. The highest bidder then gets one last chance to raise, and the old team must match that final figure to bring the player back.
RTM turns a simple auction into a poker game. Teams sometimes bid up a player they do not want, purely to make a rival pay more to keep him.
How bidding works
- Players are listed in sets: marquee names first, then capped batters, bowlers, all-rounders and wicketkeepers, then uncapped players.
- Each player has a base price, from ₹30 lakh for uncapped players up to ₹2 crore for the top bracket.
- Bids rise in fixed increments and the player goes to the highest bidder. A player nobody bids on is "unsold" and may return in an accelerated round later in the day.
- Overseas players must register in advance. Those who skip the auction without a valid reason can face a two-year ban from it.
Record buys
The 2025 mega auction produced the two most expensive purchases in IPL history: Rishabh Pant to Lucknow Super Giants for ₹27 crore and Shreyas Iyer to Punjab Kings for ₹26.75 crore. Both had captained sides to titles or finals, which is exactly the kind of experience franchises pay a premium for.
Why it matters for predictions
Squad balance decided in December often shows up in May. A team that overspends on batting and skimps on death bowling tends to leak runs at the end of an innings. When you study a side before the season, look at how they used the purse, not just the big names on the list.