The IPL salary system explained: 10 key points to know | Cricket News

NEW DELHI: Over the years, IPL auctions have seen cricketers bag multi-million dollar contracts, turning big names into even bigger stars and unknown players into household names.
But how IPL Salary Structure does it really work? Here is a brief 10-point explanation:
* The amount a player is purchased for at auction becomes their salary, with applicable taxes deducted accordingly.
* The entire salary amount belongs solely to the player, to the exclusion of other beneficiaries.
* All IPL salaries are paid per season. For example, if a player is bought for ₹10 crore, he earns ₹10 crore for every season he participates in. On a three-year contract, the player would earn ₹30 crore (₹10 crore per season), subject to his availability.
* When the IPL began in 2008, bid amounts and salaries were denominated in US dollars, with the exchange rate set at ₹40 to 1 USD. In 2012, the system switched to the Indian rupee (INR).
* If a player signs a three-year contract and is retained for the following season (when no auction is scheduled), his contract is usually extended at the same salary as before. However, this may vary if the team decides to offer a raise during contract negotiations. In most cases, retained players receive salary increases as part of the extension.
* A player available for the entire season is entitled to his full salary, regardless of the number of matches played or for which he is selected.
* If a player must opt ​​out 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 matches during the season and not the full season, he is paid pro rata, usually accompanied by a 10% retainer.
* If a player wishes 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, it will have to pay the player for the entire period for which he was signed.
* If a player is injured during the tournament, the franchise must cover the medical costs related to the treatment.
* Not all franchises pay players’ salaries all at once. The phasing 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 first team’s 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 start of the tournament, 65% of the sum during the tournament and the remaining 20% ​​within a specified period after the end of the tournament.