IPL Salary Structure Explained | Cricket News

IPL Salary Structure Explained Cricket News

Last updated on July 22nd, 2022 at 06:42 pm

We will get to know all details regarding IPL players, owners, how they get money, paid taxes, bills, and much more. Today, we are going to give lots of your answers about IPL sources in question answers form. So stay with GOOGLESPORTS.

 IPL players get paid per match : 

BCCI earns Rs 54.5 crore per match alone from the side of Star Sports, the official broadcasters. 

In the IPL 2022, star India cricketer KL Rahul was picked up by Lucknow Super Giants (LSG) for a whopping Rs 17 crore as for player salary.

How the IPL salary structure works, Explained in 10 points:

You have discerned multiple cricketers walk out with multi-crore bargains over the years at an IPL Auction. Big-name players have blown it rich, while little-accepted players have become home names, along with multi-million dollar deals.

But how definitely does the IPL salary hierarchy work? Heres a quick explanation of the below 10 points:

  1. The amount that the player is acquired becomes the players salary (taxes are worked out according to it). 
  2. There are no other clients for the salary money, the amount is the players alone.
  3. All salaries are given as per season. So if a player is sold for Rs 10 Crore, he is reimbursed that amount for one seasons appearance. So, in this case, its a three-year agreement, he will be paid Rs 30 Crore (Rs 10 Cr per season, relying on availability).
  4. In 2008, when the IPL started, the bid amounts and salaries were in US dollars. Furthermore, At that time the exchange rate was remedied at Rs 40 per US dollar. All the system was shifted to Indian rupees (INR) in 2012.
  5. If a player is obtained, say on a three-year contract, and then maintained for the next season (when theres no auction coming up), there is a contract expansion at the same price as the salary that was being expended earlier (This can differ from case to case, in the case the team wants to give the player an elevation while negotiating treaty extension. Usually maximum players are retained with salary hikes).
  6. If a player is usable for the full season he will be paid the full amount irrespective of whether of the number of matches he has played or been selected for. 
  7. If a player has to pull out because of injury before a season starts up, the franchise doesnt have to pay the player.  Nevertheless, if the player is usable only for a fixed number of matches in the season and not the full season he is compensated on a pro-rata basis, usually along with a 10% retainer. 
  8. If a player wants to be disclosed before his contract expires, he can ask the franchise to do so. If a team decides to release a player before the contract is up they will have to pay the player for the entire term for which he was leased. 
  9. However, when a player is not fine or has an injury during the tournament the franchise has to cover the medical expense of treatment. 
  10. Not all franchises always pay player salaries in one go. How lurched the salary payment for players depends on how cash wealthy the franchise is and how the sponsorship money etc is coming in their way. Some franchises pay their players an ample amount together. Cash prosperous franchises have been realized to hand out cheques to the players at the first team camp before the start of the tournament. Some might instruct to pay 50% before the tournament and 50% during the tournament. Some might follow the 15-65-20 formula, whereby they spend players 15% of their salary a week before the tournament onsets, 65% of the amount during the tournament, and the persisting 20% within a stipulated time after the tournament ends.

How do the IPL teams make money?

A major stream of income comes from the official sponsors of the IPL. For example. Vivo is the title sponsor for 9, 2016  with other sponsors, etc

Yes Bank, Vodafone, and much more. A certain percentage of the income that the event/BCCI generates from its sponsors (around 60%), is disseminated equally amongst all the franchises.

This is an inevitable amount that every IPL team generates annually from the official league sponsors.

Another big stake of income comes from broadcasting liberties. Sony Entertainment has blown a media broadcast rights contract with the BCCI for Rs. 8,200 crores up to 2017.

A major wad of that money is allocated amongst the franchises by the BCCI. This is another inevitable income that all the franchises make money annually.

Also, Read: Watch IPL 2022 Free Live Streaming on Mobile, App, PC, And Laptop

Also, every IPL team has its own unique set of dedicated sponsors. Devoted sponsorships play a huge role in replenishing the coffers of the IPL openers.

When you will see a players jersey, you will see a minor of the jersey and additional of the sponsors. In this way, the sponsors, who have struck a deal with the individual franchises, produce a lot of publicity for themselves.

A lot of influx is garnered from the stadium tickets in an IPL game. The franchises make a lot of money from the tickets that are sold during their respective home game.

Also, a lot of merchandised commodities like t-shirts and souvenirs are sold in the stadium, with food and drinks to go with it. In short, a crucial portion of all the activities glimpsed in a stadium goes to the owners of the host team.

Annually, the teams also generate money through player transfers and swaps. Unnecessary to say, the teams make enormous money if they win the IPL as the championship prize money is lovely humongous.

Almost to give you an idea, the winners of IPL-9 (2016 edition) will receive prize money worth Rs. 20 crores and the runners-up will receive Rs. 11 crores.

The IPL franchises have the following outflows:

Every team owner has to yearly dish out 10% of the final bid amount that they had positioned when they went on to evolve owners of a particular franchise.

Player remunerations are fixed at a distinct amount per year and the owners try to invest nattily in players who will suit their requirements.

Hence, we see some huge names going unsold every year during the auctions. Also, the salaries for the team support staff comprising the coaches are decided.

Also, there are many expenditures like booking the tickets of flights and hotels for the players and support staff, running the administrative offices for conference logistics of the team.

The teams have to pay an actual amount to the cricket associations in order to host their home games. For example, Shahrukh Khan A famous celebrity, and Jay Mehta pay a certain rental amount to the Cricket Association of Bengal (CAB) in order to use the Eden Gardens stadium for KKRs home games.

Also, every franchise consumes a certain amount of marketing before every season begins. Commerce may comprise hosting promotional events like jersey launches, fashion shows, supporting new initiatives, etc. Every team spends on prominent marketing tools like Television commercials and music videos to attach better to their fans.

Here are Top 5 highest-paid players for IPL 2020: 

  1. Virat Kohli- Rs. 17 crores. Virat Kohli is regarded as one of the best batsmen in the world, and also the highest-paid player in IPL 2020. …
  2. Pat Cummins- Rs. 15.5 crores. …comes after Virat Kohli
  3. Mahendra Singh Dhoni- Rs. 15 crores. …
  4. Rohit Sharma- Rs. 15 crores. …
  5. David Warner- Rs. 12.5 crores.

The IPL Players Paid : 

Before bringing a team up and running for a special season, one needs to pick the right players for a competition as enormous as the IPL.

Every team is given a bag from which they have to bid for the players on the auctions. A team cannot overstep the purse value hence they have to be incredibly judicious while bidding aggressively.

Players are sold by the franchises for a real season and the bidding commences from the base price that each player is assigned. After winning the bid for a special player, the franchisee gets the regional player to sign a contract with them.

The player is reimbursed based on his availability for the whole season. The IPL salary of a player is influenced if he is not vacant for the entire season.

This dilemma is encountered by the franchises various times when the foreign players flee the tournament midway to accomplish national duties.

For the household players, IPL has been the main boost to their careers financially. The money has provided them an added fillip in the aspect of job security.

The players are also given generous incentives if their team gains the championship. Moreover, a particular percentage of the championship money is disseminated among the players.

There is plenty of money to be won for the players even during the tournament. There are big awards on offer for the player of the match, the player with a maximum of sixes, and the best fielder of the match after each game.

After the tournament culminates, the orange cap holder (most runs in the tournament) and the purple cap holder(most wickets in the tournament) are awarded handsome rewards by the IPL.


What do you know regarding IPL players getting paid if they don’t play?

For sure, If the player doesnt play for the whole season, he will be paid only for the matches he was available for. If the players get maimed during the IPL season, the team wraps all the expenses. The player gets paid no matter whether he was in the playing XI or not.

What criteria of an IPL player get full money?

Always Players are compensated in full for the season regardless of how many matches they play, as long as they persist with the team for the entire season. However, if they evacuate the games mid-season, they will be paid on a balanced allocation basis.

What is the prize money of IPL?

Besides, the winner of IPL 2022 will obtain a whopping INR 20 crore. Chennai Super Kings, who was Champion in 2021, received Rs 20 Cr. That also means that the IPL winning team prize money is almost five times more than PSL.

Are IPL players get a salary per year?

All salaries are given as per season. So if a player is paid Rs 10 Crore, he is paid that amount for one seasons impression. So, in case this is a three-year treaty, he will be paid Rs 30 Crore (Rs 10 Cr per season, depending on availability).

Who gets money from IPL auction?

For sure, players get the auction money. The auction money gets on to the players, who are bought for a three-year contract. They are paid the amount they are purchased for at the auction, for all the three years that they are maintained by the team. The salaries of the IPL players have been agreed in their best interest.

Who is the highest paid in IPL?

Virat Kohli is the highest-paid cricketer in IPL, which is reasonable given the star value that he gives rise to the tournament and the eyeballs he attracts

Do IPL players pay tax in India?

Tax for Indian players, according to the rule of Income Tax, the team deducts the TDS before delivering the money to players. Indian players are reprimanded 10% TDS of the total bid amount. Subsequently, players have to file an ITR. Emerged by the TDS, players have to pay tax on the rationale of net income.

Why is IPL not taxed?

The Income Tax Appellate Tribunal (ITAT), in a request filed by the BCCI, upheld the assertions of the sports body that just though its making money through the Indian Premier League (IPL), the object of expanding cricket remains untouched and hence its income should be exempt from tax.

How do team owners earn money?

Ultimately though, naturally speaking after all annual income is collected and all expenditures are paid, sports franchises do not make a revenue.

However plurality increases in value yearly, hence even if an owner is not giving rise to a profit through advertising and sales, their net worth is still in ascending order.


Thus, Here we can decipher that the IPL teams with a stronger brand value will always rake in the moolah even if theyre on-field achievements are below par.

Having said that, the team owners want their team to exceed on the cricket field because at the end of the day, a good team will be realized for its accomplishments on the cricket field and not by what they do behind the scenes.

Benefits run to anyone regarding the tournament, Owner, players, commentators, broadcasters and other leading staff members get privileges.

Unnecessary to say then, the commercially ridden Indian Premier League has changed the dynamics of Indian-trained cricket in an enormous way.

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