How the IPL Salary Structure works: explain in 10 points

Contract Duration:

Player contracts are typically for one season but can be extended based on mutual agreement.

Salary Cap:

Each IPL team has a salary cap set by the BCCI. In 2024, the cap is ₹100 crores, ensuring financial parity across teams.

Auctions

Teams bid for players in the annual auction, and the highest bid determines the player's salary.

Retention & RTM:

Teams can retain a set number of players before the auction and use Right to Match (RTM) cards to reclaim players during the auction.

Player Categories:

Players are categorized as capped, uncapped, and overseas, influencing their base price in auctions.

Guaranteed Pay:

Players receive their full contracted salary even if they play fewer matches due to injury or non-selection.

Performance Bonuses:

Some contracts include performance-based bonuses for milestones like most wickets or highest runs.

Injury Substitutes:

If a player is injured, teams can replace them mid-season, but the replacement's salary comes from the team's remaining budget.

Revenue Sharing:

Players do not earn from sponsorship or gate revenue directly; these are shared among teams and the IPL governing body.

Payment Schedule:

Payments are made in installments – part before the season begins and the remainder during or after the season.