CASE STUDY
IPL PLAYER PRICING
S UBMI TTED BY
GUR U PRASAD
R UCHI RA PAL
S I MRAN AGR AWAL
CASE BRIEF
Case - pri c i n g of th e I P L pl a yers , prov i d i n g
ex p osure to I n di a n c ri c ket pl a yers .
T2 0 f ormat g a me wh ere pl a yers a re cl a s s i f i ed
i nto b askets wi th a mi n i mum b a s e pri ce.
8 t eams repr es en ti n g di f f eren t ci t i es of I n d i a , 2 0
ov e rs, bowl ed by ea c h t ea m a n d t h e f ra n ch i s ee
r i g hts of pl a yers wh i ch a re a uct i on ed of f t o
successf ul bi dders f or 1 0 yea rs .
INTRODUCTION
IPL or the Indian Premier League - is the most
popular cricket tournament in the world.
Both national and international players.
BCCI in India launched in 2008 with 20-20 cricket
forms starting with 8 teams, namely:
Bangalore Royal Challengers
Chennai Super Kings
Deccan Chargers
Delhi Daredevils
Kings XI Punjab
Kolkata Knight Riders
Mumbai Indians
Rajasthan Royals
IPL PLAYER AUCTION
The IPL auction - is a yearly multi-day event, controlled by a dedicated auctioneer conducted by
BCCI to auction the cricket players to various franchisees.
Auction is a couple of days event but it takes a lot to conduct it -team pre-auction analysis, work
on the strategy to be employed during the auction, the budget, type of player needed, players’
international commitment, injury history, his equation with the coach, and many more.
Primarily there are 3 types of players in any IPL team –
1. Capped Indian players
2. Uncapped Indian Players
3. Foreign or Overseas Players (Non-Indian Players)
PLAYER PRICING
I PL , a bi g - money g a me, sp e ndi ng crores on p l a yer
sal ari e s, pro moti on s , tra i n i n g f a ci l i t i es , et c.
I mp ortant to add requi red p l a yers to the squa d a f ter
consi d eri ng v a ri ous p ri c i n g pa ra met ers .
The p l ayers deci de th ei r ba se pri ce af t er consi deri n g
t he i r abi l i ti es a n d ma rk et d yn a mi cs .
The b i dders di v i de th e i r purs e a moun t - mak e a
st r ong core tea m al ong wi th a bal ance between i n di a n
and I nternati on a l p l a yer s .
The pl ayers a re aucti oned acc ordi n g to th ei r d oma i n -
bat ters, bowl ers , wi c k etk eepers , a n d a l l roun d ers.
FACTORS AFFECTING PRICING
1 ROLE- SPECI F I C D EMAND A N D SU P P L Y
2 BAS E AFTER R ET EN T I O N S
3 BI AS OF HAVI N G S EEN P L A Y E RS BE F O RE
4
NEED FOR CAPT AI N
5 ENDOWMEN T EF F ECT
THE PURSE AMOUNT OF IPL TEAMS
This year, each of the ten teams has been given a purse of Rs. 90 crore
for both retention and player auctions, of which they must spend a
minimum of Rs. 67.5 crore.
PLAYER'S INCOME
For a seven-week tournament, IPL players' salaries varied from
USD 20,000 to more than USD 2 million. Many sports analysts
were perplexed by the correct price for a player and the
elements that determined the value.
The salaries of IPL players vary because most franchise owners
spend at least 30% to 40% of their money on the top 5 players.
Virat Kholi, the Indian captain, was the highest-paid player until
last year, when he was retained by Royal Challengers Bangalore
for Rs. 17 crore. This year, the figure has dropped to Rs. 15 crore.
MEGA AUCTION
ONCE I N TH R EE Y EAR S
5 9 0 PLAYERS
3 7 0 - I NDI AN
2 2 0 - F OREI GN ER S
THE LAST A U CT I O N
2 NEW TEAMS
BCCI GOT 1 2 , 6 9 0 CR
ROLE OF SPONSORS
1 PROVI DES S U PPO R T I N F U N D IN G
2 SUPPORT I N R ES O U R CES
3 AND S ERVI C ES T O O T HE R P A RTY
IN RETURN PLAYERS CAN BE MADE TO ACT
KEY LEARNINGS
Ha v e l e ar nt ho w s po ns or s mak e
mon e y
I t a c t s as a u s e r g r o w t h e ng i ne
for s t ar t ups
The i mpor t a nc e o f a t t a ini ng t he
c ha nc e t he y ha v e i n t hi s p has e
Ma r ke t i ng i s no t j u s t a b out
mak i n g mon e y, i t s a bo u t mak i ng
t he p r e se nc e f e l t i n t he mar k e t
REFERENCES
https://cricketmastery.com/how-does-the-ipl-auction-work/
https://www.credable.in/business-insights/what-goes-inside-ipl-player-
auction/
https://www.espn.in/cricket/story/_/id/33259193/faqs-all-wanted-know-
ipl-2022-auction
https://sportstar.thehindu.com/cricket/ipl/ipl-auction/ipl-2022-auction-
live-updates-mega-auction-watch-full-sold-unsold-players-list-squad-team-
csk-rcb-mi-kkr-srh-dc-rr/article38422409.ece
https://journals.sagepub.com/doi/pdf/10.1177/0256090920090202
