IPL Unveils Major Purse and Salary Cap Changes for 2025-27 Seasons
The Indian Premier League (IPL) has unveiled significant changes to its Player Regulations for the 2025-27 seasons, particularly regarding the purse and salary cap for franchises.
Purse and Salary Cap:
Each of the 10 IPL franchises will have an auction purse of INR 120 crore. However, the total salary cap has undergone a major revision. Previously, the salary cap was the sum of the auction purse and incremental performance pay. For 2024, it stood at INR 110 crore. For the 2025 season, it has been increased to INR 146 crore, primarily due to the introduction of a new component: match fees.
Match Fees:
For the first time in IPL history, match fees have been introduced. Each playing member, including the Impact Player, will receive INR 7.5 lakhs per match. This amount will be in addition to their contracted salary. The inclusion of match fees effectively redefines the salary cap as auction purse + incremental performance pay + match fees.
Salary Cap Projections:
The salary cap for IPL 2026 is projected to increase to INR 151 crore, while for 2027, it is expected to reach INR 157 crore.
Impact on Players:
The introduction of match fees is a significant financial boost for players. A cricketer who plays all league matches in a season will receive an additional INR 1.05 crores on top of their contracted amount.
Big Auction:
The ‘Big Auction’ for the 2025-27 seasons is expected to take place in the second half of November this year. The location is yet to be finalized, but it is likely to be held overseas, possibly in the Gulf region.