As the Indian Premier League (IPL) gears up for its 2025 mega auction, all eyes are on the significant increase in team purses and the introduction of new retention rules. According to reports, the Board of Control for Cricket in India (BCCI) is likely to set the overall team budget between INR 115-120 crore, a significant rise from the previous season’s INR 90 crore purse. This increase is crucial as teams prepare to navigate the complexities of retaining key players and maximizing their auction strategies.
Higher Purses Reflect IPL’s Growing Financial Power
The proposed rise in auction budgets reflects the continued financial growth of the IPL. With expanded media rights deals, increased sponsorship revenue, and global popularity, the IPL is better positioned than ever to offer franchises more flexibility in squad management. The expected INR 115-120 crore purse would represent one of the largest financial outlays in the league’s history, enabling teams to compete for top domestic and international talent.
In previous seasons, the budget increment was relatively moderate, but the new potential purse could result in more aggressive bidding wars during the auction. Teams will have greater spending power, especially in a season that allows five player retentions and one Right-to-Match (RTM) card—the highest number of retentions in IPL history.
Impact of Retentions on Team Purses
The ability to retain up to five players will be a double-edged sword for teams. While it allows franchises to maintain a core group of players, it also requires them to allocate a significant portion of their purse before the auction begins.
Historically, the retention slabs have eaten into team budgets, with direct retentions costing a franchise between INR 15-20 crore for marquee players. With the new retention system, teams will need to be cautious about how they allocate their funds for retentions versus auction buys.
For example, retaining a superstar like Virat Kohli or Rohit Sharma could cost teams as much as INR 18 crore, leaving them with significantly less money to bid for other essential players during the auction. At the same time, teams will need to balance their retained Indian and overseas players, ensuring they have the right mix to maintain competitiveness.
IPL 2025 Retention Rules and Mega Auction Details: Key Updates on Player Retention and RTM Card
Right-to-Match (RTM) Cards: A Financial Gamble
The reintroduction of the RTM card adds another layer of complexity to the financial equation. RTM cards allow teams to match the highest bid for a player they previously owned, but they come at a cost. While the exact price for using an RTM card has yet to be confirmed, it could further deplete team purses, especially for franchises looking to regain key players who attract high bids in the auction.
For instance, if a player like Hardik Pandya receives a bid of INR 12 crore from another team, Gujarat Titans could match that bid using an RTM card, but it would significantly reduce their available purse for other auction buys. Teams will have to be strategic in how they use their RTM cards to avoid overspending on a few players while neglecting squad depth.
Strategic Auction Planning with Higher Purses
The increased purse will enable teams to participate more aggressively in the auction, but the retention rules will require careful financial planning. Teams with higher retention costs will have less flexibility in the auction, making it critical to identify value players in the middle and lower price ranges.
Overseas players will likely see a surge in demand, with teams like Sunrisers Hyderabad and Rajasthan Royals needing to fill key overseas slots. With more funds available, franchises will not shy away from bidding high for top overseas talent, such as David Warner or Kagiso Rabada.
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