IPL franchises can bid beyond Rs 18 crore for overseas players, but there is an important financial caveat attached.
Ahead of last year’s mega auction, the IPL governing body clarified that the maximum earning cap for overseas players is Rs 18 crore, which is equivalent to the highest retention price allowed for any player. This rule was introduced to maintain financial parity between Indian and overseas cricketers and prevent excessive inflation for foreign players.
What happens if a bid crosses Rs 18 crore?
If an overseas player is sold for more than Rs 18 crore, the player will still earn only Rs 18 crore. Any amount above Rs 18 crore does not go to the player.
Instead, the surplus amount is taken by the BCCI and is earmarked for players’ welfare programmes. These funds are used to support initiatives related to player health, insurance, post-retirement support, and grassroots development.
Does this affect team purses?
Yes. Even though the player does not receive more than Rs 18 crore, the full bid amount is deducted from the franchise’s auction purse. This means teams must be strategic, as bidding beyond the cap reduces their remaining budget without increasing the player’s earnings.
Why was this rule introduced?
The price-cap mechanism ensures:
- Fair compensation parity between Indian and overseas players
- Controlled auction inflation
- Additional funding for player welfare
In summary, while franchises are technically allowed to bid above Rs 18 crore for overseas players, Rs 18 crore remains the maximum amount the player can personally earn, with any excess going to the BCCI’s welfare fund.
