In the IPL, the auction purse and the salary cap are related but fundamentally different budget concepts that franchises must manage carefully.
The auction purse is the amount of money a team has available to spend on players at a specific auction. This figure is determined after accounting for players retained, released, or traded before the auction and is what franchises use to bid on new talent on auction day. For example, ahead of the IPL 2026 mini-auction teams entered with varying purses depending on their retained squads and previous contracts.
The salary cap, on the other hand, is the total limit on how much a franchise can spend on all player salaries for the entire season.
In simple terms, the auction purse is the funds available to bid on players at the auction, while the salary cap is the overall budget ceiling for paying all contracted players throughout the season.
Published on Dec 12, 2025
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