MUMBAI: The Indian Premier League (IPL) governing council has decided to raise the salary cap for the eight franchises for next year’s edition to Rs 80 crore from the previous cap of Rs 66 crore.
The cap will then rise by Rs 2 crore and Rs 3 crore for the next two editions. At least 75 percent of the salary cap will have to be spent during each season.
The decision was taken following a meeting with the Supreme Court appointed Committee of Administrators (CoA).
The BCCI has allowed an IPL franchise to retain or secure five players through the Right to Match (RTM) clause. If there is no retention before the player auction then franchises can choose three players through RTM.
Chennai Super Kings and Rajasthan Royals, which have returned to the IPL fold after serving their ban, can retain or use the RTM clause to secure the players who played for them in IPL 2015 and who were part of Rising Pune Supergiant and Gujarat Lions squads in IPL 2017.
This means that Dhoni will probably once again be playing for CSK. Pune and Gujarat will no longer be a part of the cash-rich league as their contracts were just for two seasons.
A franchise can secure a maximum of three capped Indian players and a maximum of two overseas players. A franchise can secure a maximum of two uncapped Indian players.
As player retention price guideline, if a franchise retains three players the price cap of the first player retained will be Rs 15 crore, Rs 11 crore in case of the second player and Rs 7 crore in case of the third player.
If two players are retained, the salary cap for the first and second player retained will Rs 12.5 crore and Rs 8.5 crore respectively. If only one player has been retained, the salary cap will be Rs 12.5 crore.
In case of uncapped players, the salary cap will be Rs 3 crore per player.
The deduction from the salary purse in case of retention will be determined on the basis of guideline price or actual price, whichever is higher.
The reserve price for un-capped players has been increased by Rs 10 lakh. In case of uncapped players, the reserve price has only been increased for players below the Rs 1 crore price category.
In terms of franchise squad size, each franchise can have a maximum of 25 players (up to 8 overseas) and a minimum of 18 players.