Explained: IPL auction’s brand-new salary cap

• IPL 2026 caps overseas player pay at Rs 18 crore despite higher bids.
• Excess bidding money goes to BCCI welfare fund, not to the players.
• Indian players have no pay cap; franchises still lose full bid amount.

As things stand, the record for the most expensive overseas player in an IPL mini-auction belongs to Australian pace legend Mitchell Starc, who was snapped up by Kolkata Knight Riders for a staggering

Rs 24.75 crore ahead of IPL 2024.

KKR head into the IPL 2026 mini-auction with a hefty purse of Rs 64.30 crore and just 12 retained players — a setup that again puts them in prime position to flex financial muscle.

But this time, there’s a catch.

IPL Auction 2026, LIVE Updates

In IPL 2026, no overseas player can take home more than Rs 18 crore, no matter how high the bidding goes.

Why overseas stars are capped at Rs 18 crore

The cap stems from new IPL regulations introduced by the BCCI ahead of last year’s mega auction. Under the revised rules, the maximum fee payable to any overseas player in a mini-auction is tied to the highest retention slab from the previous mega auction.

That top slab currently stands at Rs 18 crore, which is why overseas players cannot earn more than that amount in IPL 2026 — even if franchises bid higher.

If bidding for an overseas player crosses Rs 18 crore, the excess amount does not go to the player. Instead, the money above the cap is diverted by the BCCI into a player welfare fund.

What this actually means in practice

Say a franchise signs Cameron Green or Matheesha Pathirana for Rs. 20 crore:

• The player receives Rs 18 crore
• The remaining Rs 2 crore goes to BCCI’s welfare fund
• The franchise still loses Rs 20 crore from its auction purse

In short: the cap applies only to the player’s pay — not the team’s spending.

No cap for Indian players

Indian players are exempt from this rule. If an Indian cricketer is bought for Rs 20 crore, he pockets the entire amount, with no deductions.

How the Rs 18 crore ceiling is calculated

• The IPL’s “maximum fee” for overseas players is set at the lower of:
• The highest retention price (Rs 18 crore), and
• The highest winning bid at the previous mega auction

While the last mega auction saw Rishabh Pant go for Rs 27 crore (to LSG), the lower figure — Rs 18 crore — becomes the binding cap for overseas players in this auction cycle.

Why the rule exists

The idea is simple: prevent mini-auctions from turning into distorted markets where overseas players benefit disproportionately due to scarcity and uneven purses.

Bidding wars can still rage past Rs 18 crore — but overseas stars won’t get richer because of it.

Franchises, however, will still feel every rupee.