Explained in 10 points: How IPL’s salary structure works | Cricket News
But how exactly does IPL’s salary structure work? Here is a short explanation in 10 points:
– The sum for which the player is bought becomes his salary (taxes are calculated accordingly).
– There are no other claimants for the salary, the amount belongs to the player alone.
– All salaries are per season. So, if a player is bought for Rs 10 Crore, he receives that amount for a season’s appearance. So, if it is a three-year contract, he will be paid Rs 30 Crore (Rs 10 Cr per season, depending on availability).
– In 2008, at the start of the IPL, bid amounts and salaries were in US dollars. At that time, the exchange rate was fixed at Rs 40 for one US dollar. In 2012, the system switched to the Indian Rupee (INR).
– If a player is bought, say on a three-year contract, and then retained for the following season (when there is no auction coming up), there is a contract extension at the same price as the salary which was paid earlier (This may differ from case to case in case the team wants to give the player a raise when negotiating a contract extension. Usually most of the players are retained with raises salary).
– If a player is available for the full season, he will receive the full amount, regardless of the number of games he has played or been selected for.
– If a player has to retire due to injury before the start of a season, the franchise does not have to pay the player. However, if the player is only available for a fixed number of games in the season and not the full season, he is paid on a pro rata basis, usually with a 10% holdback.
– 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 end of the contract, they will have to pay the player for the full term for which they have been contracted.
– If a player is injured during the tournament, the franchise must cover the medical costs of treatment.
– Not all franchises pay player salaries all at once. The timing of player salary payments depends on the cash wealth of the franchise and how sponsorship money etc. comes in. Some franchises pay their players the full amount together. Cash-rich franchises have been known to hand out checks to players during the team’s first camp before the tournament begins. Some might decide to pay 50% before the tournament and 50% during the tournament. Some might follow the 15-65-20 formula, where 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 specified time after the end. of the tournament.