 New Delhi : The debate over removing the salary cap for players in the Indian Premier League seems to have been settled, at least for now.
IPL team owners will be able to spend up to $7 million on bidding for players at the auction to be held later this year for the next season, an increase of $2 million from the first auction. IPL chairman Lalit Modi on Mar 23 said, "Ten teams will have a purse of $70 million, which is $210 million (about Rs 1,000 crore) in three years. This will be the single largest auction in the sporting world." The three-year player contracts signed by the franchises in 2008 end with this season, so a huge number of players will be up for grabs again.
The only exceptions will be four Indian players and three foreign recruits that each team can retain. When the first auction was held in 2008, the IPL had imposed a salary cap of $5 million per team. Another $2 million was permitted at the second auction last year and a further $750,000 was the purse available to each team at the auction this year. After bidding Rs 1,702 crore for the Pune franchise, Sahara group chief Subrata Roy had said IPL should increase the salary cap.
"I was thinking the highest bid would be around $330 million. But I was wrong. The bid reached $370 million, which proves the event's popularity. But as far as the auction is concerned, you have to keep a reality check. That is why I have recommended a $7 million cap. Without a salary limit, it will go berserk," Modi said. The proposal still has to be approved by the IPL governing council.
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