IPL Salary Structure Explained | Cricket News
You have seen several cricketers walk away with multi-crore deals over the years at an IPL auction. Great players made their fortunes, while little-known players became household names.
But how exactly IPL salary structuring work? Here is a quick explanation:
– Players are bought in an auction after teams bid for them. Bidding starts at their base price and eventually the team with the highest bid can purchase the player for the highest bid amount.
– The amount the player is bought for becomes the player’s salary (taxes are calculated accordingly)
– There are no other claimants for the salary, the amount belongs only to the player
– All salaries are per season. So, if a player is bought for Rs 10 Crore, he receives that amount for a season’s appearance. In case it is a three-year deal, he will be paid Rs 30 Crore (Rs 10 Cr per season depending on availability)
– BCCI donates 20% of everything a player earns to that player’s board. So, for example, if an Australian player is bought for Rs 10 Crore, 2 Crore will be paid to Cricket Australia. This money comes from the central IPL revenue pool
– 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 changed to the Indian Rupee (INR)
– If a player is bought, say on a one-year contract, and then retained for the following season, there is a contract extension at the same price as the salary that was paid earlier (This may differ from case to case). the other if the team wants to give the player a raise while negotiating a contract extension)
– The phasing of player salary payment 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.
But how exactly IPL salary structuring work? Here is a quick explanation:
– Players are bought in an auction after teams bid for them. Bidding starts at their base price and eventually the team with the highest bid can purchase the player for the highest bid amount.
– The amount the player is bought for becomes the player’s salary (taxes are calculated accordingly)
– There are no other claimants for the salary, the amount belongs only to the player
– All salaries are per season. So, if a player is bought for Rs 10 Crore, he receives that amount for a season’s appearance. In case it is a three-year deal, he will be paid Rs 30 Crore (Rs 10 Cr per season depending on availability)
– BCCI donates 20% of everything a player earns to that player’s board. So, for example, if an Australian player is bought for Rs 10 Crore, 2 Crore will be paid to Cricket Australia. This money comes from the central IPL revenue pool
– 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 changed to the Indian Rupee (INR)
– If a player is bought, say on a one-year contract, and then retained for the following season, there is a contract extension at the same price as the salary that was paid earlier (This may differ from case to case). the other if the team wants to give the player a raise while negotiating a contract extension)
– The phasing of player salary payment 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.
