NEW DELHI: Over the years, IPL auctions have witnessed cricketers bagging multi-crore deals, turning big names into even bigger stars and unknown players into household names.
But how does the IPL salary structure actually work? Here’s a quick 10-point explainer:
* The amount a player is bought for at the auction becomes their salary, with applicable taxes deducted accordingly.
* The entire salary amount belongs solely to the player, with no other claimants.
* All IPL salaries are paid on a per-season basis. For instance, if a player is bought for ₹10 crore, they earn ₹10 crore for each season they participate. Over a three-year contract, the player would earn ₹30 crore (₹10 crore per season), subject to their availability.
* When the IPL began in 2008, bid amounts and salaries were denominated in US dollars, with an exchange rate fixed at ₹40 per USD. In 2012, the system transitioned to Indian rupees (INR).
* If a player is signed on a three-year contract and retained for the next season (when no auction is scheduled), their contract is typically extended at the same salary as before. However, this can vary if the team decides to offer a raise during contract negotiations. In most cases, retained players receive salary hikes as part of the extension.
* A player available for the full season is entitled to their full salary, regardless of the number of matches they play or are selected for.
* If a player has to pull out due to injury before a season begins the franchise doesn’t have to pay the player. However, if the player is available only for a fixed number of matches in the season and not the full season he is paid on a pro-rata basis, usually along with a 10% retainer.
* If a player wants to be released before his contract expires, he can ask the franchise to do so. If a team chooses to release a player before the contract is up they will have to pay the player for the full term for which he was contracted.
* If a player is injured during the tournament the franchise has to cover the medical expense of treatment.
* Not all franchises pay player salaries in one go. How staggered the salary payment for players is depends on how cash rich the franchise is and how the sponsorship money etc is coming in. Some franchises pay their players the full amount together. Cash rich franchises have been known to hand out cheques to the players at the first team camp before the start of the tournament. Some might decide to pay 50% before the tournament and 50% during the tournament. Some might follow the 15-65-20 formula, whereby they pay players 15% of their salary a week before the tournament starts, 65% of the sum during the tournament and the remaining 20% within a stipulated time after the tournament ends.