How Does the IPL Auction Work? Purse, Retentions and RTM Explained

The IPL auction is where franchises build their squads. Players are bid for one at a time in an open auction, and the highest bidder signs them for the season. It is one of the most watched events in cricket, even though no ball is bowled.

Mega auction and mini auction

A mega auction is held every few years. Teams can keep only a handful of players, and almost everyone else goes back into the pool, so squads are rebuilt from scratch. The most recent mega auction was held in November 2024 in Jeddah, ahead of IPL 2025.

In the years between, there is a smaller mini auction. Teams release some players, keep most of their squad, and use the auction to fill the gaps.

The salary purse

Each franchise has a fixed purse: the total it can spend on its squad. For the 2025 mega auction the purse was ₹120 crore per team. The cost of every retained player is taken out of the purse before the auction starts, so a team that keeps several stars arrives with less money to spend.

Squads also have limits on size and on the number of overseas players, so a team with plenty of money can still be forced to stop bidding.

Retentions

Before a mega auction, each team can retain a limited number of players from its existing squad. Retained players are paid a set amount according to the order in which they are retained, and that amount comes off the purse. Uncapped players, who have not played international cricket, can be retained more cheaply.

The Right to Match (RTM) card

The RTM card lets a team win back one of its former players at the auction. When bidding for that player ends, the old team can match the final price. Under the 2025 rules, the team that made the winning bid then gets one last chance to raise its offer, and the old team must match that higher figure to keep the player.

Base prices and the bidding

Every player registers with a base price, the minimum bid. The auctioneer reads out each player in sets, grouped by role and experience, and teams raise paddles to bid in fixed increments. When no one bids higher, the player is sold.

Unsold players

A player who gets no bid is unsold. Teams can ask for unsold players to be brought back later in the auction, often at their base price, which is how bargains are found at the end of the day. Unsold players can also be signed later as replacements for injured players.

Why the auction matters

Because every team spends within the same purse, the auction is a test of strategy as much as money. Teams that plan for balance, with enough bowlers, a wicketkeeper and depth for injuries, usually do better than teams that spend everything on two or three stars.

To understand how matches themselves are decided, read about the Impact Player rule and net run rate.